|29 May, 2019

Bangladesh's Summit, Japan's JERA to invest $500mln in Cox's Bazar energy project

Part of overall Matarbari project by Bangladesh govt

SINGAPORE/DHAKA - A company controlled by Bangladeshi conglomerate Summit Group said on Wednesday it had signed a memorandum of understanding (MOU) with Japan's JERA Asia to develop energy infrastructure including port facilities in the Matarbari area in Cox's Bazar.

Under the MOU, both companies will initiate the project, which is capable of handling 20 million tonnes of bulk cargo a year, Summit Corp said in a statement. The project will have an estimated investment of more than $500 million.

"This large energy infrastructure project will provide impetus to Bangladesh's trade by development of various terminals for cargo and primary fuel in Matarbari area in Cox's Bazar," according to the statement.

Summit Corp is a subsidiary of Singapore-based Summit Power International, which has power generation assets in Bangladesh and is owned by Summit Group. JERA Asia is a subsidiary of JERA, Japan's top buyer of liquefied natural gas (LNG), and handles project development in energy-related areas.

The MOU was signed during Bangladesh Prime Minister Sheikh Hasina's official visit to Japan this week.

The project is expected to be operational within two years of signing a firm project agreement between the companies and the Bangladeshi government, Summit said.

This is a part of Bangladesh's largest, 1.5 trillion taka ($18 billion) infrastructure project, said a senior energy ministry official, who asked not to be named as he is not authorised to talk to media.

Under the overall government project, the government will build a deep seaport at Matarbari, four units of coal-fired power plant with a capacity to produce 2,400 megawatts of electricity, and a liquefied natural gas (LNG)-fuelled power plant, also with facilities at Matarbari.

In addition, eight coal-fired and LNG-based power plants with 8,320 MW capacity will be set up at Moheskkhali, the official added.

Summit has submitted a proposal to build several power plants and other projects, the official said.

At the seaport, Bangladesh plans to create facilities to load and unload 112,000 tonnes of coal to feed 12 large coal-fired power plants. Also 1 billion cubic feet per day of LNG supply facilities will be created at Matarbari.

(Reporting by Jessica Jaganathan in SINGAPORE and Ruma Paul in DHAKA, additional reporting by Aaron Sheldrick in TOKYO; Editing by Tom Hogue and Kenneth Maxwell) ((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net; Twitter: https://twitter.com/j3ssi3))

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