After being uncooperative since late May, Summit LNG Terminal Co. (SLNG) has seeked $22 million from Petrobangla, citing a force majeure clause due to the operational halt of its Floating Storage Regasification Unit (FSRU) caused by the Remal Cyclone.
Petrobangla has yet to decide on the payment, indicating they are open to discussions either in-house or in court if Summit prefers. They referenced a similar case in 2021 when Summit sought payments for an FSRU halt due to natural causes, which Petrobangla did not pay.
Summit’s Managing Director emphasized the company’s international reputation, with investors like Jera, Mitsubishi, and Sumitomo Mitsui Banking Corporation, and stated that their focus is on restoring operations. An energy expert criticized the contract, arguing that it was secured under the Hasina regime’s special laws (QEEES Act 2010, amended 2021) without competitive tendering. He urged a review to protect national interests. The current administration’s Adviser of Power also announced a review of contracts made under the previous regime.
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