Written by The Banking Post
The government has appointed an international legal consultant to manage disputes and strengthen contractual arrangements in the liquefied natural gas (LNG) sector, amid growing complexities in energy deals.
State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) recently engaged George Thomas West Jr to provide legal support on key LNG agreements, including terminal use agreements (TUAs), sales and purchase agreements (SPAs), and implementation agreements (IAs), officials said.
The consultant will be responsible for drafting, reviewing and negotiating contracts to ensure they align with international best practices and prevailing market standards.
Although not officially stated, industry insiders say the appointment is also linked to the ongoing dispute over the cancellation of Summit Group’s LNG supply deal and floating storage and regasification unit (FSRU) project.
Petrobangla scrapped a 15-year LNG supply agreement with Summit Oil & Shipping Company Ltd—scheduled to begin deliveries in 2026—several months before its execution. The deal was one of four long-term LNG contracts signed between mid-2023 and mid-2024, alongside agreements with Qatar Energy Trading, OQ Trading International of Oman, and US-based Excelerate Gas Marketing.
Earlier, Petrobangla had also terminated a separate contract with the group for constructing a 4.5 million tonnes per annum FSRU at Moheshkhali Island. The project, involving a 170,000-cubic-metre unit with a daily send-out capacity of 600 million cubic feet, was formally cancelled in October 2024.
Officials say the new legal engagement will help ensure greater transparency, reduce risks in future LNG deals, and bring consistency to Bangladesh’s fast-evolving gas import framework.
