The government has cancelled its contract with Summit Group on the second floating LNG terminal (FSRU).

The contract was annulled at the directive of the Ministry of Power, Energy, and Mineral Resources.

Petrobangla Chairman Zanendra Nath Sarker confirmed the matter on Monday.

Summit Group stated that they have received the contract cancellation notice and, in a written statement, expressed that "this is unreasonable and an appeal will be made for review. This group has a proven track record of implementing long-term infrastructure projects in Bangladesh responsibly and transparently."

On March 30, Petrobangla and Summit Group signed a contract to construct the third FSRU in Bangladesh. In addition to the terminal construction, they also agreed to supply 1.5 million tons of liquefied natural gas (LNG) annually by the end of 2026.