ENERGY: DEFA to seek Cyprus LNG imports

The state-owned Natural Gas Public Company (DEFA) will launch two separate tenders this year for the import of liquefied natural gas (LNG) to facilitate the use of LNG for electricity generation by January 1 2020, DEFA executive Chairman Symeon Kassianides told parliament on Tuesday.

The first tender concerning LNG supply will be launched next month, while the second tender for infrastructure will be launched in June.

Several efforts made by Cyprus in the past to import LNG for electricity generation were unsuccessful due to steep prices, according to reports.

The infrastructure, Kassianides said, includes a Floating Storage and Regasification Unit (FSRU), a jetty borne gas pipeline, that would transfer natural gas to the electricity production units of the Electricity Authority of Cyprus in Vasilikos.

He added the estimated cost is EUR 250 mln, of which 40% or EUR 101 mln will provided by the EU, while the EAC will participate in the joint venture with up to 30%. Kassianides added that the European Investment Bank has expressed interest to finance part of the project.

The DEFA Chairman told MPs that the company cannot rely on Cypriot natural reserves which are not expected to be extracted any time before January 2020.

“We spoke with the operators (of the offshore blocks) and they need more time,” he added.

EAC Chairman Andreas Marangos, the main client for the LNG imports, said that the authority is also preparing for the event Cyprus will not use LNG for electricity generation by January 1, 2020.

The EAC is preparing to install technology to remove sulphur oxides from its electricity generation units in bid to avoid EU penalties on emissions, which will cost EUR 30 to 40 mln.