13 October, 2018
Greek oil and gas firm Energean has upped the ante by saying it can deliver more competitive gas prices to Cyprus than the tender procedure Nicosia is going through.
“Energean has submitted a proposal to the Cypriot Government to supply natural gas to the country in the 1st quarter of 2021 at no upfront cost to the Cypriot citizens at a very competitive gas price,” the company said in a statement.
“Energean always respects the rules and regulations of every country it operates in and has obviously confirmed its option to supply natural Gas to Cyprus in accordance with the proposal made,” it added.
According to sources, Energean is unhappy that it is excluded from a tender to supply Cyprus with gas because the bids relate to LNG infrastructure only.
Those same sources argue that the project will be much more expensive compared to gas supplied through a pipeline.
Energean is seeking approval from the Cyprus government to build a pipeline from its Israeli offshore gas fields and import 0.5 to 1 billion cubic metres (bcm) of gas per year to the island.
“Free Market principles should see the most competitive gas price to end customer be promoted, irrespective of the chosen infrastructure development scheme,” said Energean’s statement.
The energy firm believes the market should decide which is the better offer.
Cyprus’ Natural Gas Public Company (DEFA) has issued a tender for the design, construction and operation of a floating LNG import terminal to be located at Vasiliko Bay, near Limassol, separately of efforts to import the fuel by January 2020 to avoid emissions fines.
Recent reports suggested that Shell, a partner in one of the offshore oil and gas exploration blocks, was keen to bid for the supply, but that this could be considered a conflict of interest, as the Dutch-UK energy giant also has controlling stakes in natural gas liquefaction plants in Egypt, where Cyprus gas could eventually be piped to.
Energean made an informal approach to the government to develop and take Aphrodite gas by pipeline to the FPSO (Floating Production Storage and Offloading facility) it proposes to use to develop its Karish and Tanin gas fields in Israel, treat it and export it to Cyprus.
“We submitted a proposal to sell gas from the FPSO (Floating Production Storage and Offloading) facility to Cyprus,” Mathios Rigas, CEO of Energean, told Reuters in July.
This gas will be transported to Cyprus from its Tanin and Karish gas-fields in Israel by building a 200 km pipeline.
In July, DEFA described as “unsolicited” a proposal from Greek company Energean to build a pipeline to Cyprus from Israeli offshore gas fields.
DEFA chairman Simeon Kassianides said at the time that the proposal was not submitted as part of a call for tender. Once the tender is called, he added, any interested company, Energean included, could submit their proposals.
The new tender, issued on behalf of the Natural Gas Infrastructure Company (ETYFA), is for a floating storage and regasification unit (FSRU), a jetty for mooring the FSRU, a jetty borne gas pipeline and related infrastructure, all of which is expected to cost some EUR 250 mln.
The LNG terminal will be completed in 2020 and has secured a funding of 40%, or up to EUR 101 mln, as a grant from the EU under the Connecting Europe Facility (CEF) financial instruments.
The European Investment Bank has expressed interest to participate in the project while the island’s state-owned electricity company (EAC) is also expected to hold 30%.
Energean is an independent Oil & Gas Company listed on the London Stock Exchange. It is executing a $1.6 bn development project in Israel and has already signed with Israeli industrial customers and power plants 12 long term Gas Sales and Purchase Agreements for an average of 4.2 BCM per year.
SOURCE
Greek oil and gas firm Energean has upped the ante by saying it can deliver more competitive gas prices to Cyprus than the tender procedure Nicosia is going through.
“Energean has submitted a proposal to the Cypriot Government to supply natural gas to the country in the 1st quarter of 2021 at no upfront cost to the Cypriot citizens at a very competitive gas price,” the company said in a statement.
“Energean always respects the rules and regulations of every country it operates in and has obviously confirmed its option to supply natural Gas to Cyprus in accordance with the proposal made,” it added.
According to sources, Energean is unhappy that it is excluded from a tender to supply Cyprus with gas because the bids relate to LNG infrastructure only.
Those same sources argue that the project will be much more expensive compared to gas supplied through a pipeline.
Energean is seeking approval from the Cyprus government to build a pipeline from its Israeli offshore gas fields and import 0.5 to 1 billion cubic metres (bcm) of gas per year to the island.
“Free Market principles should see the most competitive gas price to end customer be promoted, irrespective of the chosen infrastructure development scheme,” said Energean’s statement.
The energy firm believes the market should decide which is the better offer.
Cyprus’ Natural Gas Public Company (DEFA) has issued a tender for the design, construction and operation of a floating LNG import terminal to be located at Vasiliko Bay, near Limassol, separately of efforts to import the fuel by January 2020 to avoid emissions fines.
Recent reports suggested that Shell, a partner in one of the offshore oil and gas exploration blocks, was keen to bid for the supply, but that this could be considered a conflict of interest, as the Dutch-UK energy giant also has controlling stakes in natural gas liquefaction plants in Egypt, where Cyprus gas could eventually be piped to.
Energean made an informal approach to the government to develop and take Aphrodite gas by pipeline to the FPSO (Floating Production Storage and Offloading facility) it proposes to use to develop its Karish and Tanin gas fields in Israel, treat it and export it to Cyprus.
“We submitted a proposal to sell gas from the FPSO (Floating Production Storage and Offloading) facility to Cyprus,” Mathios Rigas, CEO of Energean, told Reuters in July.
This gas will be transported to Cyprus from its Tanin and Karish gas-fields in Israel by building a 200 km pipeline.
In July, DEFA described as “unsolicited” a proposal from Greek company Energean to build a pipeline to Cyprus from Israeli offshore gas fields.
DEFA chairman Simeon Kassianides said at the time that the proposal was not submitted as part of a call for tender. Once the tender is called, he added, any interested company, Energean included, could submit their proposals.
The new tender, issued on behalf of the Natural Gas Infrastructure Company (ETYFA), is for a floating storage and regasification unit (FSRU), a jetty for mooring the FSRU, a jetty borne gas pipeline and related infrastructure, all of which is expected to cost some EUR 250 mln.
The LNG terminal will be completed in 2020 and has secured a funding of 40%, or up to EUR 101 mln, as a grant from the EU under the Connecting Europe Facility (CEF) financial instruments.
The European Investment Bank has expressed interest to participate in the project while the island’s state-owned electricity company (EAC) is also expected to hold 30%.
Energean is an independent Oil & Gas Company listed on the London Stock Exchange. It is executing a $1.6 bn development project in Israel and has already signed with Israeli industrial customers and power plants 12 long term Gas Sales and Purchase Agreements for an average of 4.2 BCM per year.
SOURCE
