Cyprus & World News

DEFA plans new tender for short term gas supply to Cyprus

08 January, 2014

The state Natural Gas Public Company (DEFA) is working to prepare the documents for a new tender for short term supply of natural gas in Cyprus, Chairman Eleni Vassiliadou told the Cyprus News Agency.
“We are working very hard on two key documents and we haven’t stopped even during the holidays,” said Vasiliadou, but she did not refer to a timetable.
On December 5, the Cabinet set out the basic terms for the new process. Τhe most important difference is the extension of the period of gas supply to ten or seven years, while DEFA holds the right to extend the length of time for three more years.
The previous invitation to tender provided for a three and a half year period for the gas supply, a term which Energy Minister George Lakkotrypis said was making the signing of the contract "impossible".
Vasiliadou added that DEFA and the Electricity Authority of Cyprus (EAC) are preparing documents for the agreement of gas supply from DEFA to EAC, which will be used as a basis for negotiation with the suppliers that have already expressed interest. The agreement with the EAC will be included in the basic document of the tender, where a special appendix will contain the main terms.
Vasiliadou said she hopes that developments on the consultations will be reviewed by the DEFA board by the end of the week.