Cyprus Electricity Authority short-lists associates for oil terminal construction

The Cyprus Electricity Authority has notified the government of its recommendation on the selection of the investor who will construct an oil terminal for liquefied natural gas.

“The Board of Directors of the CEA, which held an extraordinary meeting on Thursday, decided unanimously to accept the recommendation of the independent consultants, the managerial committee and the Authority’s negotiating team relating to the short list of the strategic associates and the preferred strategic associate with whom CEA will consult on the matter,” a press release, issued after the meeting, said.

The CEA decision was conveyed to Minister of Commerce, Industry and Tourism Antonis Paschalides.

During Thursday's extraordinary meeting, the CEA discussed the selection of the strategic associate who will participate in the joint venture which will undertake to develop, fund, operate and manage the terminal for liquefied natural gas at Vasiliko.

The terminal will receive, store and de-liquefy natural gas to be imported in Cyprus in liquefied form for the production of electricity power.

Speaking to CNA, Chairman of the CEA Board Haris Thrassou explained that the Board will wait for a decision by the competent authority on the supplier of natural gas before it takes its final decision on the selection of the strategic associate who will build the oil terminal.

Two of the four interested investors have already declared that, unless they are selected as the supplier of natural gas, they are not interested in participating in the construction of the oil terminal, Thrassou said.

The CEA Board will meet again on January 4 at a regular meeting.

The multimillion project is to be built in Vasiliko, on the southern coast, and it is set to be run jointly by the government and the successful bidder for a number of years.

Cyprus, an EU member since May 2004, stores oil stocks on the island and abroad.