Cyprus & World News

IEC, Qatar keen to bid for supply of natural gas to Cyprus

29 January, 2014

The Israel Electric Corp., as well as the world’s third largest gas exporter, Qatar, are expected to bid for the supply of natural gas to Cyprus, until such time as the island’s offshore gasfields prove commercially viable and start production in about a decade.
The Natural Gas Public Company (DEFA/Cygas) has announced an invitation for an open competition for the supply of natural gas for a period of up to ten years commencing January 1, 2016.
According to the announcement, DEFA’s requirements are for a supply of natural gas for delivery at the station boundary at the Vasilikos power station, along the southern coast of Cyprus.
Interested parties are required to submit proposals which cover all commercial and infrastructure requirements for gas delivery to Vasilikos (e.g. gas sourcing, transportation/shipping and processing).
The announcement, posted on notes that DEFA requests interested parties to only submit proposals which provide for a complete solution.
Israel Electric, a partner with the Electricity Authority of Cyprus, Cyprus-based Quantum Corp. and the Greek Public Power Company (PPC/DEH) in the sub-sea EuroAsia Interconnector electricity cable along the eastern Mediterranean, has reportedly shown interest to bid for the DEFA contract, according to the Israeli news site Globes.
IEC’s venture partners in the bid are expected to be BP and VITOL, the Dutch energy trader currently building a 300-mln-euro storage terminal near the Vasiliko hub.
The Globes report suggested that the IEC bid would probably be about 33% cheaper than the cost of fuel that the EAC currently imports in Cyprus.
A previous bidder, Itera of Russia, was rejected as it had offered a rate nearly 30% above the current rate EAC was paying for.
Cyprus President Nicos Anastasiades has returned from a three-day official visit to Qatar heading a major state and trade delegation, where among others, cooperation in the fields of energy supply, infrastructure projects, exploration and production was also discussed with the Emir.
Government officials confirmed that Qatar may be interested to bid for the DEFA contract as well.