Solaris Engineering (CY) has signed a Memorandum of Understanding with H4E Gasfuel to provide supply and engineering services for the design and construction of a Floating Storage Regasification Unit (FSRU) in Cyprus.
H4E Gasfuel is part of a consortium of companies including Norway’s Hoegh LNG, which has submitted a proposal for the installation of an FSRU in Cyprus by next year.
Cyprus Energy Regulatory Authority (CERA) declined to comment as the procedure of reviewing the application is ongoing to determine whether it is complete so that it can then begin evaluating its content.
Solaris Engineering said the MoU concerns the provision of engineering, supply and management engineering services for the design, the installations subsidiaries and conducting systems at the Vasiliko Terminal Point.
The company said it is “able, with its international experience and know-how, to also provide Finished Liquefied Natural Gas Management Services”.
The consortium Hoegh LNG, VTTV Vassilikos & H4E Gasfuel “aim to provide liquefied natural gas to Cyprus as soon as possible, which will reduce electricity costs for local consumers as well as gas emissions and gas emissions taxes”.
Hoegh LNG has submitted a proposal for the installation of an FRSU in Cyprus as an interim solution until the state-owned LNG infrastructure is in place at Vasiliko.
With its proposal, Hoegh LNG “offers Cyprus the installation, within the 1st Quarter 2021, of an FSRU at Vasiliko and a pipeline to transport the gas to the EAC’s power plant and potentially other users.”
It said the proposal “does not in any way interfere with the government’s plans, while the Cyprus Government will be able to save in excess of €100 mln per year from 2021 onwards, by switching power generation to burning natural gas from heavy fuel oil.”
Cyprus can also achieve lower emissions from power generation, resulting in lower cost while the economy will benefit significantly from lower electricity production cost, said Hoegh LNG in a statement last week.
“We will require no state aid or investment and Hoegh LNG is open to working closely with DEFA, for delivering this important infrastructure project for Cyprus.”
Nicosia said it is giving serious consideration to the proposal.