Summit Oil and Shipping Ltd has won the government's approval to establish Bangladesh's third floating liquefied natural gas terminal in Cox's Bazar.

The Cabinet Committee on Economic Affairs on Wednesday approved state-run oil company Petrobangla's proposal to task Summit with setting up the terminal with a capacity to regasify 600 MMcf/d of imported LNG at Moheshkhali, according to Syed Mahbub Khan, additional secretary of the Cabinet Division.

Two floating LNG terminals, each with a capacity of 500 MMcf/d, are currently operational in Maheshkhali. Summit manages one of them, while the other is run by Excelerate Energy of the United States.

The committee also approved plans to import a cargo of LNG from Excelerate Energy through an open tender, according to Khan. This is set to cost Tk 5.7 billion in total, with the price of each unit being $13.9.

During the meeting, a long-term agreement to purchase fertilisers from the United Arab Emirates, Saudi Arabia and Qatar on a G2G basis was also approved.