Cyprus Cabinet to decide on natural gas supply

The Cabinet will take the final decision about the supply of natural gas to the country, Minister of Commerce, Industry and Tourism Antonis Michaelides has said, noting that a ministerial committee adopted on Thursday a proposal for the construction of a land terminal for this purpose.

The committee, which met on Thursday with all parties involved, under President Tassos Papadopoulos continues to believe that, under the circumstances, a land terminal is the best solution for the safe storage of natural gas.

“However, knowing that this project is a lengthy process, the government is determined to examine alternative methods to supply the country with natural gas, including floating supply platforms,” the Minister said after the meeting.

He said at the meeting President Papadopoulos insisted that all participating parties should air their views to have an overall picture of the issues at hand. Present at the meeting were, among others, representatives from the Commerce Ministry, the Law Office of the Republic and the president of the Commission for the Protection of Competition.

Responding to questions, he said the approved proposal will probably be brought before next week’s weekly Cabinet meeting on Wednesday.

The Minister invited all interested parties to study in depth the Committee decision and assess the situation before they reach their own conclusions.

He called on AHK (Cyprus Electricity Authority) to go along with the government position on the matter and suggested that if they do not, the Board of this semi-government organization should resign.

It is expected that the government will invite tenders later on to bid for the construction of a land terminal in Cyprus to provide the country with natural gas, in an effort to meet its obligations to the European Union, which it joined in May 2004.

The terminal is expected to be ready in about seven years from now.

The three units which AHK now operates using diesel or crude oil are expected to be converted to receive natural gas by 2009 when the fourth unit will be delivered.