DEFA is­sues ten­der for FSRU LNG ter­mi­nal

Financial Mirror (Cyprus) - - CYPRUS -

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:

https://www.epro­cure­ment.gov.cy/epps/cft/pre­pareViewC fTWS.do?re­sourceId=3370883

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