DEFA issues tender for FSRU LNG terminal
The state Natural Gas Public Company (DEFA) has issued a tender for the design, construction and operation of a loating LNG import terminal to be located at Vasilikos Bay, near Limassol, separately of efforts to import the fuel by January 2020 to avoid emissions fines.
Recent reports suggested that Shell, a partner in one of the offshore oil and gas exploration blocks, was keen to bid for the supply, but that this could be considered a conflict of interest, as the Dutch-UK energy giant also has controlling stakes in natural gas liquefaction plants in Egypt, where Cyprus gas could eventually be piped to.
In July, DEFA described as “unsolicited” a proposal from Greek company Energean to build a pipeline to Cyprus from Israeli offshore gas fields.
DEFA chairman Simeon Kassianides said at the time that the proposal was not submitted as part of a call for tender. Once the tender is called, he added, any interested company, Energean included, could submit their proposals.
The new tender, issued on behalf of the Natural Gas Infrastructure Company (ETYFA), is for a floating storage and regasification unit (FSRU), a jetty for mooring the FSRU, a jetty borne gas pipeline and related infrastructure, all of which is expected to cost some EUR 250 mln.
The LNG terminal will be completed in 2020 and has secured a funding of 40%, or up to EUR 101 mln, as a grant from the EU under the Connecting Europe Facility (CEF) financial instruments. The European Investment Bank has expressed interest to participate in the project while the island’s state-owned electricity company (EAC) is also expected to hold 30%.
“This [tender issue] is an important milestone for DEFA, and for the people of Cyprus, who will soon benefit from the cost savings and environmental benefits from the use of natural gas. We expect to issue a request for expressions of interest for the supply of LNG in the coming weeks and a full tender early in 2019”, said DEFA Chairman Symeon Kassianides.
The tender documents can be government’s e-procurement portal: