Summit Group is in a payment dispute with Petrobangla over a $22 million bill for its floating LNG terminal, which was out of operation for four months due to cyclone Remal. The terminal halted operations on May 24 and resumed on September 19, causing the country to face gas supply shortages. Summit argues that under its contract with Petrobangla, fees should be paid during force majeure events, such as adverse weather conditions, which include cyclones. Petrobangla has marked the invoices as disputed and referred the matter to its legal department. The Institute for Energy Economics and Financial Analysis (IEEFA) has raised questions about the financial viability of floating storage and regasification units (FSRUs) in Bangladesh, noting that these high-cost, weather-vulnerable facilities are less commonly used in major LNG-importing countries. The IEEFA highlighted that while FSRUs offer faster deployment and lower initial costs, their long-term operation can be more expensive than onshore terminals, which are often more reliable, especially in regions prone to severe weather.
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