Summit Group eyes data centres as LNG demand surges

Bangladesh's Summit Group is stepping into the country's data centre market while continuing to pursue its growing LNG projects, as the nation's demand for liquefied natural gas is expected to remain strong.

In interviews with Platts, part of S&P Global Energy, Summit Group Chairman Muhammed Aziz Khan discussed the company's plans to leverage its existing power capacity and infrastructure to expand into data centres and LNG.

"Bangladesh and Summit are uniquely positioned with excess electricity capacity for the next few years. We would like to be a pioneer in this global AI race," Khan said.

He noted that the country's recently enacted Personal Data Protection Ordinance, 2025, is also expected to stimulate demand for domestic data centres.

The group intends to utilise its subsidiary, Summit Technopolis Hi Tech Park, or vacant land alongside its power plants and the river, to build its first large-scale facility in Dhaka, Khan said.

"Data centres are challenged primarily by the lack of electricity. We can, with the requisite government permissions, give electricity quickly," he added.

Summit currently has approximately 350 megawatts of capacity that could be dedicated to data centres, positioning it as a hyperscaler, according to Khan. The company is also laying optical fibres from Bangladesh to Singapore, although the work has experienced slight delays due to regulatory hurdles.

"However, we are hopeful of overcoming those challenges. Subject to government permissions, Summit can build its first data centre in about 18 months," Khan said.

He expressed openness to strategic partners who bring marketing expertise for its data centres. The company is also exploring opportunities to import green electricity from countries such as Indonesia and Malaysia.

LNG impetus

"I continue to believe that LNG and its related infrastructure are essential for the country's growth," Khan said. 

He added that the newly elected government, following the upcoming national elections expected in February, will likely implement more structural reforms for Bangladesh's infrastructure and development over a longer time horizon.

Bangladesh's LNG imports are projected to reach 7.2 million metric tons per annum in 2026, up from an estimated 6.8 million mt/year in 2025, according to Khan. The country's LNG imports could climb to 15 million mt/year in the coming years alongside 6%-7% GDP growth, he said.

Khan highlighted Bangladesh's trade advantages despite international challenges. "The US imposed a 20% reciprocal tariff on many Bangladeshi goods last year. However, Bangladesh's lower tariffs compared to some neighbouring countries give it an edge over other competitors." 

He added that the foreign currency situation is expected to continue improving with the country's economic growth.

Domestic gas production in Bangladesh peaked at 2.6 Bcf/d in 2018 but has steadily declined, averaging a 5% annual reduction to 2 Bcf/d by 2024, according to S&P Global Energy CERA analysts in a December 2025 report. In H1 2025, production fell further to 1.8 Bcf/d, a 7% decrease from the total for 2024. The analysts noted that limited exploration and production contributed to the decline, partially driving the anticipated growth in LNG imports.

Khan also commented on international LNG prices, saying they are expected to be volatile in the coming months.

"Prices are set to rise substantially in the short-medium run if tensions escalate in Iran. However, in the longer term, prices will be pressured by supply waves from the US and Qatar as well as by optimism about global geopolitics," he said.

Platts assessed the March JKM, the benchmark price for LNG cargoes delivered to Northeast Asia, at $10.334/MMBtu on 16 January, up 3.5% from 15 January.

Growth pathway

Summit Group had planned to build Bangladesh's first onshore LNG terminal at Matarbari Island in the Bay of Bengal on a build, own, operate, and transfer basis. However, the project has been delayed due to the abolition of the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010, which was repealed by the government in 2024, Khan said.

The onshore terminal could proceed either through an international tender or a government-to-government contract.

"So, if an international tender is launched, we will participate in it. But if it is a G2G contract, then we will only be able to receive services from the terminal owned by the government of Bangladesh," Khan said.

Bangladesh is also considering converting around 30,000 Mcf/d of unutilised natural gas from the gas-rich Bhola island into LNG and delivering it to gas-starved industries on the mainland. When asked whether Summit would participate, Khan said that doing so would require a transportation facility rather than infrastructure for gas use, and that Summit was not keen to pursue it.