Event: Japan LNG and Gas - Session 02
Guest: Nicholas Padgalskas, CFO, Summit Power International
Presenter: Richard Nelson, partner, King & Spalding

Summit Power International is part of Summit Group, which is a leading infrastructure focused conglomerate in Bangladesh. We are the largest Independent Power (IPP) in Bangladesh. We have been operating for almost 25 years and co-sponsored the first private power project in the country and we also operate the second FSRU terminal in Bangladesh and other parts of Summit Group include fuel supply and trading through a shipping business. We also have, our Summit group also has port operations. It also operates the largest telecom infrastructure fibre optic network in Bangladesh and is involved as well in real estate development.

We actually have 18 power projects that we own and operate, 17 are operational and one is under development, a 600 megawatt CCGT gas-fired plant, totaling our total portfolios is around 2.3 Gigawatts of power. Almost 70 percent of that is gas-fired. The rest is it’s fuel oil. We have 20 percent of the market share of the private operated power market in Bangladesh.

We also have our 500 million cubic feet per day FSRU. Since 2019, JERA (Japan’s largest power generation company) has also been a strategic investor into Summit Power International and along the lines of partnerships.

We also partner with Mitsubishi in our LNG project, GE as well across several of our plants, GE is viewed as a very strong EPC provider and even invest with us in some of our projects as well as with Taiyo Life so you know as we discuss enabling LNG import and infrastructure development in various regions doing partnerships are critical and our partnerships have been quite helpful.

We operate one of two FSRUs in Bangladesh. They are located in the southern part of the country where there’s a bit of a deeper draft that allows for LNG terminals to come into the country. We own 75 percent of the terminal alongside Mitsubishi. The terminal company leases in FSRU from Exelerate. We also contract with PSA marine for tugboat services. We had an EPC contract with Geo-ocean Mcgregor to develop the mooring and pipeline from the FSRU onto shore. We have obtained financing from SNBC and Clifford Capital and we interface with the government of Bangladesh as well as with PetroBangla which is a national oil company on the project agreements. The total import capacity of LNG with these two FSRUs is one BCF per day and looking at the existing domestic gas production and projected gas demand within the country as put forth in the gas sector master plan in Bangladesh. And there's a substantial gap between existing domestic gas production and demand and the government has taken steps to try to fill that gap with imports from LNG. One observation is that in each country it’s constrained in terms of its domestic gas supply. So, if gas is to form part of the power generation mix there needs to be an infrastructure whether over land or through LNG imports into the countries.

Sri-Lanka has no gas domestic gas at the moment but is in the process of developing an FSRU and Pakistan is also very similar to Bangladesh has good domestic supply but it’s declining and they as well have brought two FSRUs into the country and are looking to expand. In summary, I wanted to reach a conclusion that enabling gas fire gas import into the countries really has to come down to government support both from a policy perspective but also to enable the required infrastructure whether that be FSRU or LNG terminals as well as the gas pipeline grid and electrical grid.

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