Summit Group has urged Petrobangla to reconsider its decision to cancel the country's third floating storage and regasification unit (FSRU) project.

The termination was invalid, and Summit warned that any delay in the project could exacerbate energy insecurity in Bangladesh. Summit has already invested around $20 million in the project, the company said in a statement.

Petrobangla notified Summit on October 7 last year that the project in southeast Bangladesh would be terminated, followed by a final termination notice on January 14.

Summit said the termination was based on claims that a performance bond for the project was submitted by its local parent, Summit Corporation Ltd, rather than Summit LNG Terminal II Co Ltd (SLNG II), a Dhaka unit of Summit Power International Limited based in Singapore.

Additionally, Petrobangla claimed the bond did not comply with an agreed template and was not submitted within the stipulated 90-day deadline.

As a result, Summit stated it had sought legal advice from international and local firms—Herbert Smith Freehills and Kamal Hossain & Associates—which confirmed that the termination was invalid under the terms of the terminal use agreement.

Summit engaged with Petrobangla and the government under the agreement to reconsider the decision. The company

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