STAR BUSINESS REPORT

Summit Group yesterday urged the interim government to withdraw its recent decision to terminate an agreement over the establishment of the group’s second floating regasification plant for liquified natural gas (LNG) imported by Bangladesh.

Summit LNG Terminal II Co (SLNG II), a unit of Summit Group, did not breach any conditions precedent of agreements signed with Petrobangla to build the “Floating Storage and Regasification Unit (FSRU)”, said a Summit press release.

A condition precedent is an event that must come to pass before a specific contract is considered to be in effect, according to investopedia.com.

SLNG II said they received a notice from Petrobangla on October 7 notifying of the termination of the project situated at Moheshkhali in Cox’s Bazar.

They said the notice mentioned that SLNG II did not submit a “performance bond” by June 28 or within the stipulated 90 days as per prior agreements.