LNG terminal construction delayed until July 2024 - FINANCIAL MIRROR

12 AUGUST 2023
Kyriacos Kiliaris

The construction of the liquified natural gas terminal at Vasiliko, Limassol, has been pushed back until the end of July 2024, confirmed Energy Minister George Papanastasiou.

However, the minister argued that the development is a positive milestone for the project, as it offers a clear and definite timeframe for the first time.

In a telephone interview with the Financial Mirror, Energy Minister George Papanastasiou confirmed the Chinese-led consortium awarded the contract for the LNG terminal has unofficially filed a new timetable, promising to deliver the project by July 2024.

China Petroleum Pipeline Engineering Co (CPC) presented its latest work timetable to Cypriot officials three weeks ago.

It is the fourth time the Chinese-led consortium has pushed back the construction date. Initially, there were hopes of it being ready by early 2022.

It was back in December 2019 when Cyprus signed the contract with the consortium.

LNG import terminal a ‘transformational project’ for Cyprus - CYPRUS MAIL

November 12, 2021
Kyriacos Nicolaou

The LNG import terminal project would be transformational for Cyprus said Symeon Kassianides, the chairman of the Natural Gas Public Company (DEFA), said on Thursday at the Eastern Mediterranean Energy Conference being held in Nicosia,

“This project will lift Cyprus’ energy isolation and reduce the country’s reliance on oil,” Kassianides said, adding: “It’s a transformational project for the country, it will lead to lower electricity costs, new technological developments and create jobs.”

Cyprus’ LNG import terminal, a pivotal energy project, took centre stage, during the second of the three-day conference in which energy industry professionals from Cyprus and abroad are participating.

Kassianides, whose presentation looked at DEFA’s impact and the transition towards a cleaner energy source, explained that this is the largest sustainable investment ever undertaken by Cyprus.

Cyprus’s one-way road to natural gas - FINANCIAL MIRROR

24 December 2020
Costis Stambolis

As Cyprus has embarked on the road to introducing natural gas to its energy system, following the signing of agreements by DEFA – Cyprus’s gas company – with contractors and suppliers last July, attention is now shifting on the role that gas is expected to play in the island’s economic development. According to the timetable presented by Simeon Kassianidis, DEFA’s chairman, at the 8th Cyprus Energy Forum on December 15, construction and mooring of the €300 million FSRU type LNG terminal to be located in Vasilikos, will be completed by autumn 2022 when first gas deliveries are scheduled.

Gas will then be channeled on a priority basis to the Vasilikos power station complex run by the Electricity Authority of Cyprus (EAC).

The thermal power stations run by EAC, which at present use highly polluting fuel oil, will switch to gas, thereby slashing their GHG emissions by at least 50%. Subsequently, the rest of the power stations operating on the island will convert to gas as this is mandatory, according to EU directives, in order to lessen their environmental impact.

Defa chairman says gas brings millions of euros to Cyprus - CYPRUS MAIL

December 4, 2020

Andrew Rosenbaum

“The import of gas into Cyprus has the potential to transform the country’s economy and, as a result of this gasification of the island and the region, is already bringing in millions of euros,” Cyprus Natural Gas Public Company (DEFA) chairman Symeon Kassianides pointed out.

Speaking at a webinar sponsored by the Petroleum Economist magazine entitled “Unlocking the potential of East Med Gas,” Kassianides explained the many benefits of the import of gas to Cyprus.

“Not only does it permit the reduction of electricity costs, which are among the highest in Europe, but also because it will permit the opening up of the electricity market. This has been open for some time, but the sale of electricity to the grid depends on the arrival of gas on the island – independent electricity producers had dormant licences which are soon to become a reality.”

“Another new reality is the creation of gas-powered generation plants which are now coming to Cyprus. Renewable generation projects are planning to use gas turbines so that they can produce cheap electricity round the clock and not only when the sun is up during the day. This will make renewables even more viable, so in terms of the energy production we have a complete transformation.”

EIB approves €150 million for LNG project in Cyprus - CYPRUS NEWS AGENCY (CNA)

CNA - Cyprus/NICOSIA 11/06/2020 20:31

European Investment Bank’s (EIB) Board of Directors has approved the amount of €150 million to fund the construction of a project which will allow the import of liquefied natural gas (LNG) in Cyprus, Natural Gas Public Company (DEFA) announced on Thursday.

In a press release DEFA says that the project will be implemented by Natural Gas Infrastructure Company of Cyprus (ETYFA).

In particular, the loan is of a duration of 20 years with a favourably low rate and will cover capital construction expenditure, the press release adds.

Chinese-led consortium to build Cyprus’ gas import terminal - ASSOCIATED PRESS

13 December 2019

NICOSIA, Cyprus (AP) — Cyprus signed a deal on Friday with a Chinese-led consortium to build the east Mediterranean island nation’s first natural gas import terminal that officials said will help the country generate cleaner and cheaper energy.

Energy Minister Georgios Lakkotrypis said the 289 million-euro ($323 million) floating terminal will help reduce Cyprus’ carbon footprint from electricity generation by up to 30%.

The terminal is designed to convert imported liquefied gas back into gaseous form for use in Cyprus’ main power plant.

A consortium of China Petroleum Pipeline Engineering, Metron, Hudong-Zhongua Shipbuilding and Wilhelmsen Ship Management is expected to finish construction by early 2022.

The terminal that’s expected to be completed by early 2022 is to be built by a consortium of China Petroleum Pipeline Engineering, Metron, Hudong-Zhongua Shipbuilding and Wilhelmsen Ship Management.

Cyprus aims to sign contract on natural gas infrastructure and supply in 2019 - IN-CYPRUS / CNA

November 27, 2019 at 7:46am
Edited by Bouli Hadjioannou

The government’s aim is to finalise and sign a contract on developing the necessary infrastructure and the supply of natural gas in the Cypriot market within 2019 Energy Minister Yiorgos Lakkotrypis has said.

Lakkotrypis was speaking during an event held to present the annual report for 2018 of the Electricity Authority of Cyprus.

He said the aim is to complete the development project for the necessary infrastructure and the natural gas provision process in the Cypriot market for the electricity production purposes by the end of 2021.

According to Lakkotrypis, the Natural Gas Infrastructure Company (ETYFA) is now in consultations with the first tenderer who is first in line, aiming to finalise the contract and sign it within 2019. Referring to the project he added that it is expected to be completed within 24 months. EAC has a 30% shareholding in ETYFA.

New setback for plans to import gas - CYPRUS MAIL

November 1, 2019

George Psyllides

The island’s effort to import natural gas to power its electricity grid looked set to delay further on Friday after complications emerged in the tender process for the construction of an LNG import terminal at Vassilikos

The latest obstacle to the effort spanning some 14 years concerns an appeal lodged by a company against a decision to exclude it from the project because of links to an entity implicated in a waste treatment scandal.

Aktor SA is part of a consortium comprising China Petroleum Pipeline Engineering Co Ltd (CPPE), Aktor SA and Metron SA, Hudong-Zhonghua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Ltd that won the tender for the construction of a floating storage regasification unit (FSRU), a jetty for the mooring of the FSRU, pipelines, port and other facilities.

ENERGY: Cyprus receives intense international interest for gas supply tender - FINANCIAL MIRROR

13 September, 2019

The first phase of Cyprus Gas Company’s (DEFA) tender process for the supply of liquefied natural gas (LNG) has triggered considerable interest from major international players such as Shell, BP, Eni and Total.

According to DEFA, 25 suppliers, among the most dominant in the global LNG market, are seeking to supply gas to Cyprus and have submitted the prerequisites to qualify for the next stages of bidding and negotiation.

“The intense market competition for LNG supplies confirms that the strategy to acquire an FSRU was a decision toward the right direction,” a DEFA statement said.

Bidders/suppliers participating in the next round of bidding and negotiating are; Gunvor International B.V. Amsterdam, Naturgy LNG Marketing, Centrica LNG, Endesa Energia, Cheniere Marketing International LLP, Equinor ASA, Novatek Gas & Power Asia Pte, Shell International Trading Middle East, Enel Global Trading, Eni Trading & Shipping, Total Gas & Power Asia Private, Osaka Gas Kabushiki Gaisha, Powerglobe LLC, Repsol LNG Holding, Petronas LNG, BP Gas Marketing, Vitol, B.B. Energy (ASIA), Mytilineos, Uniper Global Commodities SE, Marubeni Corporation, SONATRACH and Public Gas Corporation (DEPA), Eni (Gas & LNG Marketing and Power), Glencore Energy UK and Mitsui & Co.

Cyprus runs the risk of being trapped into an expensive undertaking with gas deal - CYPRUS MAIL

September 1, 2019

Charles Ellinas

Gas alone will not reduce carbon emissions to the levels required by the EU. This would require a substantial increase in the share of renewables and biofuels in Cyprus energy mix

DEFA announced on 23 August its decision to award the tender for the construction of an LNG import terminal at Vasilikos. This will comprise a floating storage regasification unit (FSRU), a jetty for the mooring of the FSRU, pipelines, port and other facilities.

The winner is a consortium comprising China Petroleum Pipeline Engineering Co Ltd (CPPE), Aktor SA and Metron SA, Hudong-Zhonghua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Ltd.

Announcing its decision DEFA said “we believe that the future of the country is aligned with natural gas and we expect it to play a major role in the economic development of the country in years to come.

“The establishment of the natural gas market will boost the development of the whole energy and industry sectors of the Republic.”

DLA Piper advises Natural Gas Public Company of Cyprus on terminal - HYDROCARBON ENGINEERING

Tuesday, 27 August 2019 11:30

DLA Piper has advised the Natural Gas Public Company of Cyprus (DEFA) on its tender process for the selection of the contractor for the design, construction, procurement, commissioning, operation and maintenance of an offshore LNG import terminal and associated infrastructure, located in Vasilikos, Cyprus.

DEFA announced today the outcome of its tender process, selecting as the first ranked tenderer a consortium led by China Petroleum Pipeline Engineering Co. Ltd, and includes AKTOR S.A., Metron S.A., Hudong-Zhongua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Ltd. As per the terms of the announcement, the tender is for the next stage of the development of a natural gas market in Cyprus and that major companies involved in the European gas markets also participated in the tender process.

The DEFA Chairman, Symeon Kassianides, commented: “We are pleased to see the successful outcome of the process. Here at DEFA we believe that the future of the country is aligned with natural gas and we expect it to play a major role in the economic development of the country in years to come. The establishment of the natural gas market will boost the development of the whole energy and industry sectors of the Republic.”

Multinational consortium named for LNG construction - CYPRUS MAIL

August 23, 2019
George Psyllides

Α multinational consortium of JV China Petroleum Pipeline Engineering Co Ltd, Aktor S.A. and Metron S.A., with Hudong-Zhonghua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Limited ranked first in the evaluation for the construction of the infrastructure required for the introduction of natural gas in Cyprus, it was announced on Friday.

It followed a lengthy and complex tender process overseen by the state natural gas company, Defa, in cooperation with external industry experts.

The top ranked bidder had to satisfy a series of qualitative, quantitative and financial criteria, so as to be able to demonstrate an ability to perform at the high standards set by Defa regarding the development of the Cyprus natural gas market infrastructure.

Firms including MOL, Osaka, Gaslog, chosen in Cyprus FSRU LNG tender - REUTERS

LONDON, July 17 (Reuters) 12:44 PM

Three joint ventures have been selected by Cyprus in the first stage of a tender to provide a floating storage and regasification unit (FSRU) to import liquefied natural gas (LNG)
The first joint venture is led by China Petroleum Pipeline Engineering, Natural Gas Public Company of Cyprus (DEFA) said on its website.
The second comprises Samsung C&T, Posco E&C, LNG ship-builder Mitsui O.S.K. Lines and Japanese utility Osaka Gas
The third consortium includes LNG shipping company Gaslog , a unit of Spanish utility Enagas and Italian gas infrastructure company SNAM .

Cyprus aims to have the FSRU vessel in place and importing by 2021 and has a 101 million euro ($113 million) grant from the European Union.

It requested expressions of interest last month to supply the LNG, with a deadline of Sept. 6. ($1 = 0.8919 euros) 

Cyprus nearing transition to a new LNG era - FINANCIAL MIRROR

GasLog's LNG carrier Methane Julia Louise loading
LNG from Shell’s mighty floating LNG Prelude

12 July, 2019

Cyprus Natural Gas Public Company (DEFA), announced Friday it has successfully completed the first step of its troubled tender procedure for the installation of a €250 mln LNG Import Terminal plus infrastructure.

Three international consortia comprising of industry leaders are bidding for the multi-million contract. The bidders are;

1. Joint Venture China Petroleum Pipeline Engineering CO, Ltd – CPP, AKTOR S.A., METRON S.A.
2. Consortium Samsung C&T, Posco E&C, Mitsui O.S.K. Lines, Osaka Gas
3. European Consortium (DAMCO Energy S.A., ENAGAS Services Solution S.L.U., GasLog LNG Services Ltd., SNAM Spa, TERNA S.A.)

DEFA said the wider range of companies expressing an interest highlighted the “importance of the tender at an international level as well as its viability”.

Chairman of DEFA Symeon Kassianides said: "The great interest shown for this important Cyprus energy project by European and international players of the gas market, is just the first milestone for the realization of a long-term project that is directly linked to the country's energy upgrade and energy pluralism.”

Cyprus's Natural Gas Public Company plans FSRU contract for October - PLATTS

10 Jun 2019 | 10:50 UTC
Gary Lakes, Editor: Dan Lalor

Nicosia — Cyprus's Natural Gas Public Company (DEFA) plans to finally sign a contract in October for the installation of an FSRU and relevant infrastructure, following closure of the tender on July 12, an official Cypriot source has informed S&P Global Platts.

In its fourth attempt to award a tender for the supply of natural gas, Defa opened a tender last year. It has extended the deadline several times since "to allow companies interested in bidding sufficient time to put together top-quality proposals so Defa has a better chance of success," the source said.

Last Tuesday, Defa invited expressions of interest for the supply of LNG for the FSRU, which will be connected to the country's main power station at Vassilikos.

"There are two processes in the EoI. One calls for expressions of interest in the LNG SPA, which will involve negotiations for mid-term, 3-5 year LNG SPAs. The second invites expressions of interest for master sales agreements that will enable Defa to procure cargoes from the spot market," the source said.

The government is badly mishandling our gas imports - CYPRUS MAIL

June 2, 2019

Charles Ellinas

By not considering other import options the government is condemning us to even higher electricity prices

The planned import of liquefied natural gas (LNG) to Cyprus is about to enter a new and worrying dimension which could stifle competition and likely lead to high gas prices and more expensive electricity than ever before.

During a public consultation organised by Cyprus Energy Regulatory Authority (Cera) between April 12 and May 13 regarding its draft ‘Statement of Regulatory Practice and Methodology of Natural Gas Tariffs’ it emerged that the government intends to declare the natural gas market in Cyprus as an emerging market for 10 years, giving monopoly rights to natural gas public company (Defa) and its subsidiary Etyfa, the Natural Gas Infrastructure Company – set up with 30 per cent participation by the EAC to manage the LNG reception, storage and regasification facilities. This is based on a view expressed by the Council of Ministers in 2007 that, under certain conditions, and taking advantage of EU regulations, it was then the government’s intention to declare the gas market in Cyprus as isolated and emerging.

Two companies responded to the consultation call: Greek company Energean and PEC Powerenergy Cyprus. The latter is in the process of building the first private gas-fired power generation plant in Cyprus. Not surprisingly both tabled multiple objections to the government’s intentions.

The fact that only two companies saw the need to take part in this consultation is by itself of concern. There could be many reasons for this lack of interest: lack of understanding, indifference and possibly a belief that the consultation is just a paper exercise that will not alter decisions already made. Whatever the reasons, it does not bode well. The end result could be higher energy costs for the already heavily burdened Cypriot consumer.

International hydrocarbons interest in Cyprus confirmed - CYPRUS MAIL

FEBRUARY 24, 2019

The biggest and most important hydrocarbons conference and exhibition in Egypt and the East Med region, EGYPS 2019, took place in Cairo earlier this month, and Cyprus took part with a country pavilion showing the Cyprus Hydrocarbons Company (CHC) and natural gas public company (DEFA) among others.

In a wide-ranging interview about the conference, Egypt’s Petroleum Minister Tarek El Molla spoke about the country’s oil and gas achievements in 2018 and plans for 2019. The great success of 2018 was accelerating natural gas production, with Zohr at the forefront, as a result of which, by the end of the year, domestic gas consumption was exceeded for the first time since 2014. This helped Egypt become self-sufficient, stop LNG imports in October and re-start exports. By January Shell’s Idku LNG plant was exporting 0.52 billion cubic feet per day (bcf/d).

The development of Zohr is reaching its final stage, and is expected to achieve 3.2 bcf/d plateau production by the end of 2019. This will allow the Damietta LNG plant to restart exports later in the year, once outstanding arbitration issues are resolved.

ExxonMobil’s drilling in context - CYPRUS MAIL

FEBRUARY 10, 2019

As ExxonMobil approaches the end its drilling campaign, rumours about the results abounded this week as have the extravagance of some of the claims. So let’s put what we know in context. What I present below is based on information, seismic data, satellite data, even hearsay, but we all need to be mindful that so far ExxonMobil has not made any announcements.

Results so far

It appears that Delphine has not struck commercial quantities of gas, but it is likely to have encountered gas presence. Even though disappointing, given expectations, this does not mean that there is no gas in the reservoir. This can only be ascertained by evaluating the results from Delphine and potentially carrying out further drilling in the vicinity of this target. Seismic and satellite data show a strong potential for a substantial gas reservoir at this location. We need to wait and see what ExxonMobil announces.

Dreams versus reality in the push for Cyprus gas - CYPRUS MAIL

DECEMBER 16, 2018
Charles Ellinas

Cyprus on the brink of big decisions on energy was the subject of the Sixth Energy Symposium organised by the Institute of Energy North-East Europe (IENE) and Financial Media Way (FMW) in Nicosia on December 4.

The key message was that hydrocarbons offer serious opportunities that with careful handling can benefit Cyprus geopolitics and economy as well as the wider region.

In their introductory speeches, the organisers of the symposium, IENE executive director, Costis Stambolis, and managing director of FMW, Iosef Iosef, said the symposium stressed the success and significance of the energy profile of Cyprus internationally.

President Nicos Anastasiades, in his opening speech described the three pillars that guide the government’s energy plans:

• Development of hydrocarbons, that belong to all legal citizens of Cyprus
• Overcoming Cyprus’ energy isolation and developing other energy sources, including renewables
• Close energy cooperation with those neighbouring countries that are willing partners.

He talked about the drive to create an East Med Energy Corridor to connect East Med’s hydrocarbon resources to Europe. This includes LNG exports, as well as the East Med pipeline. He considers this to be key in terms of contributing to EU’s energy needs.

Use of LNG ‘a one-way street’, EAC boss says - CYPRUS MAIL

December 5, 2018 

Gregoris Savva

The use of liquified natural gas (LNG) for electricity generation is the only option for Cyprus to diversify its energy mix and avoid stricter fines on emissions from power generation, the chairman of the electricity authority (EAC) Andreas Marangos has said.

In an interview with CNA, Marangos said the EAC was ready for the two major challenges, namely the liberalisation of the electricity market and the use of natural gas for electricity generation.

He acknowledged that fluctuations in electricity bills which often cause reaction from the public and businesses but are “a reality” dependent on international oil prices, as 90 per cent of power generation is dependent on imported liquid fuel.

“The way to have lower and more stable prices is the introduction of natural gas in energy generation. A reduction in the electricity bills will depend on the natural gas purchase price but also on the introduction of solar plants and renewable source of energy to the system,” he said, as the Cyprus Natural Gas Company has launched a call for tenders for LNG import terminal.