Summit to invest USD $1 billion in collaboration with GE and Excelerate Energy
Summit Power International Pte. Ltd. (“Summit” or the “Group”), the Singapore incorporated power producer, today announced collaborations to develop USD$1 Billion of gas-to-power generation and an offshore liquefied natural gas (“LNG”) import terminal. IFC, a member of the World Bank Group, has been engaged as the lead arranger for financing to develop the Meghnaghat II natural gas based combined cycle power plant. Upon completion, Summit will have a total installed generating capacity of over 3,000MW. The expansion in its core market coincides with Summit’s strategy to expand across emerging markets in the South-East Asia. To enable clean, sustainable power, Summit will be chartering a floating storage and regasification unit (“FSRU”) from Excelerate Energy for LNG storage and regasification services.
GE, through GE Capital’s Energy Financial Services, and Summit have entered into a Memorandum of Understanding (MOU) for GE to potentially provide USD$50 Million of equity to Summit, to be used for the development of power projects in Bangladesh. In addition, GE Gas Power Systems will have rights to supply equipment for the power projects based on gas turbine technology and developed in the next 36 months by Summit.
To make gas available for these projects, Summit LNG Terminal Company (“SLTC”) will sign the FSRU Time Charter Party agreement for 15 years with Excelerate Energy L.P. (“Excelerate”), the floating LNG specialist. The agreement is for the provision of one of Excelerate’s existing FSRUs.
