The interim government has canceled the contract to build the country's third floating liquefied natural gas (LNG) terminal at Maheshkhali in Cox's Bazar with Summit Group.

Bangladesh Oil, Gas and Mineral Resources Corporation (Petrobangla) Secretary Ruchira Islam and Public Relations Officer Tariqul Islam Khan confirmed this information to the Times on Tuesday (October 8).

The Awami League government signed the agreement with the Summit Group on March 30 this year under a special law without any tender.

Ruchira Islam said that the interim government has canceled the agreement with Summit Group to set up floating LNG terminal (FSRU-3). The terminal was supposed to be the third floating LNG terminal in Bangladesh and the second terminal operated by Summit Group.

And Tariqul Islam Khan said that the energy and mineral resources department of the interim government has taken such measures due to the violation of some terms of the agreement.

Meanwhile, Summit in a statement told the media that on Monday evening they received a notice of cancellation of the FSRU Terminal Use Agreement (TUA). This, they feel, is unreasonable and will be appealed for review.