Cyprus Mail

Way now open for LNG terminal

THE deadline to appeal a decision awarding the construction of an LNG import terminal at Vasilikos has elapsed, allowing the project to go ahead after years of successive tenders that were scrapped.

Citing sources, daily Politis said none of the eliminated bidders have filed an appeal within the allotted time slot.

In late August the Natural Gas Public Company (DEFA) announced its decision to award the tender for the construction of the LNG terminal to a Chinese-led consortium.

The terminal includes a floating storage regasification unit (FSRU), a jetty for the mooring of the FSRU, pipelines, port and other facilities.

DEFA is now expected to finalise award of the construction contract.

The tender documents provide that the project must be completed within 24 months of the signing of the agreement – meaning that the LNG terminal and associated infrastructures should be ready by late 2021.

The LNG will be used for electricity generation; the island’s power plants currently utilise heavy fuel oil.

Construction of the LNG import terminal is estimated to cost some €250m; €100m of that will come via the EU’s Connecting Europe Facility.

Whereas the infrastructures aspect is now closed, authorities have yet to secure supply contracts for the actual fuel, as the two tenders were running separately.

DEFA has said that in the event it’s unable to secure long-term supply contracts, it will purchase LNG on the spot market.

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