Christopher Coats, CONTRIBUTOR
Still years away from exploiting its own natural gas potential, Cyprus is now reviving efforts to nail down import options to help the country meet its climate targets through liquefied natural gas projects.
According to media reports, Cyprus is preparing to launch a study into importing LNG to help meet the country’s domestic demand and ease the planned transition towards lower emissions power production.
“The objective of the study is, based on the analysis of the various options of LNG supplies, to identify and propose an option/project, an appropriate process and a timetable for the supply of gas to Cyprus [as soon as possible] and before 2020,” according to a tender released by state-owned Natural Gas Public Co.
The utility expects bids for an LNG purchase tender from Gaffney, Cline & Associates, KPMG, Wood Mackenzie, DEP Levant Oil & Gas, DNVGL, Arntzen de Besche and Genesis Oil and Gas, according to the report.
The tender comes after earlier efforts failed last year after relevant domestic agencies rejects a proposal from a firm that intended to sell about a third more natural gas than initially proposed.
The import move comes despite some progress made towards developing local natural gas reserves as they are not expected to start producing for several years. Further, the country’s largest field has struggled to progress as financing has been difficult to nail down amid lower global pricing.
Once the country can move its domestic production efforts closer to output completion, it will then face the possibility of export options to an eager European market and regional cooperation, including possible meeting points with Turkey. However, those challenges remain a long ways off for Nicosia and its local energy agencies.
In the meantime, Nicosia is exploring options for meeting its natural gas demand, as well as meeting its goal of switching power generation to natural gas by 2018 and meeting broader, global climate goals agreed to in Paris earlier this year.
SOURCE
In the meantime, Nicosia is exploring options for meeting its natural gas demand, as well as meeting its goal of switching power generation to natural gas by 2018 and meeting broader, global climate goals agreed to in Paris earlier this year.
SOURCE
