Written by The Banking Post
Summit Oil and Shipping Company Limited (SOSCL), a subsidiary of the country’s leading energy conglomerate Summit Group, has moved the High Court (HC) challenging the government’s decision to cancel its long-term liquefied natural gas (LNG) supply contract.
In a writ petition filed recently, the company sought a rule asking why the cancellation order, issued by Petrobangla on September 1, should not be declared illegal and void. The petition also urged the court to stay the execution of the cancellation memo until the case is resolved.
The respondents named in the petition include the Energy and Mineral Resources Division, the Law Ministry, Petrobangla, and Rupantarita Prakritik Gas Company Limited (RPGCL) — all key entities involved in the country’s gas and energy management framework.
According to the filing, Petrobangla formally communicated the contract termination to Summit on September 1, triggering the company’s legal response.
Barrister Karishma Jahan, counsel for Summit, confirmed that the hearing on the writ petition is expected to be scheduled soon.
Industry insiders said the dispute underscores the growing tension in the country’s LNG import and supply arrangements, at a time when Bangladesh faces tight energy supplies and rising import costs.
If the High Court issues a stay, Summit could temporarily retain its contractual position pending a final verdict — a move that may also influence future government decisions on private-sector participation in the energy import business.
