An agreement to sign a contract on developing the necessary infrastructure and the supply of liquified natural gas (LNG) in Cyprus has been finalised.
The goal is to be able to use LNG in the market for electricity purposes by the end of 2021.
The deal follows lengthy negotiations between the Natural Gas Infrastructure Company (Etyfa), the Natural Gas Public Company (Defa) and the joint venture JV China Petroleum Pipeline Engineering Co Ltd and Metron SA, which will carry out the project.
The government gave the go-ahead to finalise the deal on November 22 during a meeting at the Presidential Palace in which President Anastasiades made it clear that Defa must go ahead with the procedures for the provision of natural gas in Cyprus.
The final process of examining and signing the complex agreement will take place this week.
The joint venture will also include Hudong-Zhonghua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Limited, vital for the conversion and transport at sea of the gas and will be based in the Vasilikos facilities in Larnaca.
LNG tanker carrier Galea, which will operate from 2021 to 2046, will be used as the Floating Storage Regasification Unit (FSRU).
The total cost for the installation and the deployment of the floating unit is estimated at around €260 million, of which €101 million will be covered by European Union funds.