Summit rejoinder and our reply

The price proposals that Summit quoted Petrobangla for supplying LNG to it are lower than current market prices in Asia  and Europe, the Summit Corporation Limited said.

In a rejoinder to a report titled "Summit proposes long-term LNG supply to Petrobangla" and published in The Business Standard on 3 August 2022, Summit said according to the Japan Korea Marker and the Netherland's Title Transfer Facility, spot market prices of LNG as of 5 August were $47.072 per MMBTU and $58.139 per MMBTU respectively.

It claimed that its long-term price proposal was approximately 75% lower than the spot prices on the aforementioned date, while its short-term price quote is substantially less than in the current spot markets as well.

Following is the full unedited text of the rejoinder

We refer to the news article by Eyamin Sajid titled 'Summit proposes long-term LNG supply to Petrobangla", (page 01) published in The Business Standard on 3rd August 2022, Wednesday. The article contains a number of misrepresentations and non-factual statements. Please find below the reply from Summit:

While we are unable to disclose our proposed price quotes for importing Liquefied Natural Gas (LNG) due to legally binding confidentiality, we would like to inform your valued readers of the facts. Summit has offered two proposals to supply long-term LNG to Bangladesh. The first is a short term (2023-2025) proposal and the second is a long term (2026-2037) proposal. These two proposals include LNG import rates that Summit is able to source for Petrobangla.

According to the Japan Korea Marker (JKM) and the Netherland's Title Transfer Facility (TTF) the spot market prices of LNG as of 5th August 2022 were USD 47.072 per MMBTU and USD 58.139 per MMBTU, respectively. Summit's long term (2026-2037) proposed price quote is approximately only one-fourth of the JKM price. This means that we have proposed a price that is approximately 75% lower than the spot price on the above-mentioned date. On the other hand, Summit's short term proposed price is also substantially less than the current LNG spot market rates in Asia and Europe.

Since the submission of these significantly lower proposals compared to what Petrobangla has been purchasing in recent months, Summit has not received any correspondence from Petrobangla. We believe our proposals are the best offers that Petrobangla and the nation has received in these turbulent times. 

We are sharing these facts with you as we expect an excellent news media like yours to never mislead or misinform its readers. Likewise, we are grateful to be able to inform your readers of the facts, especially when the world is experiencing an unprecedented energy crisis.

Our Reply

The report was made on Summit's proposal submitted to the Petrobangla. The Business Standard received a copy of that proposal. All information and data written in the report was based on the document.