Cyprus needs energy transformation in 2025 - CYPRUS MAIL

Sunday 22 December | 16:41

Dr Charles Ellinas

Energy was constantly in the news in 2024, but serious progress was limited.

By far the biggest success was the ‘Photovoltaics (PV) for All’ scheme. With the failure of utility-scale renewables (RES) projects to contribute constructively to Cyprus’ energy mix so far, ‘Photovoltaics for All’ has enormous potential to increase RES penetration and significantly reduce the cost of electricity to those that participate, as well as reduce emissions into the atmosphere. This scheme will continue and household demand to participate in the scheme will increase in 2025.

But where Cyprus really needs to see progress is in the perennial problem of high electricity prices. These remain some of the highest in Europe.

Based on purchasing power parity, in 2024 Cyprus had the second highest household electricity price in Europe, largely due to taxation. Tax accounted for just under 35 per cent of the price, the fourth highest in Europe and well above the corresponding EU average, of about 23 per cent. In Greece this percentage was only around 15 per cent. Bringing taxes and levies down to Greece’s level, could slash electricity prices from 33 cents/kWh to 25 cents/kWh.

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.

Aphrodite gasfield has certainly resurfaced - CYPRUS MAIL

George Papanastasiou, Cyprus' Energy Minister

June 12, 2023
Dr Charles Ellinas

Despite challenges, the latest plans for the development of Aphrodite are more serious and realistic

Aphrodite is back in the limelight. On May 31 NewMed submitted an updated development plan to Cyprus’ government, on behalf of the field joint venture (JV) that includes Chevron as the operator and partner Shell. This is based on transporting the gas to Shell’s West Delta Deep Marine (WDDM) existing processing and production facilities offshore Egypt, from where it will be transported to the mainland eventually for domestic consumption or for export as LNG. First gas is expected by 2028.

This goes against George Papanastasiou’s, the energy minister, wishes for the Aphrodite partners to prioritise supply of gas to the island. In April he said that he didn’t think that gas from the Aphrodite gasfield should end up in Egypt’s liquefaction terminals.

“Our approach around the use of natural gas as a transition fuel is being reviewed and we are including the natural gas found in the East Med, and more specifically Cyprus’ EEZ, in the mix for use in the domestic market,” he said.

New impetus for tardy LNG project - CYPRUS MAIL

April 2, 2023

Elias Hazou

The recently-appointed energy minister George Papanastasiou seems to have injected a sense of purpose

Construction of a €300 million liquefied natural gas (LNG) import terminal at Vasilikos, plagued by a series of delays, has finally picked up some steam. And whereas not all the ducks are lined up in a row, so to speak, a more assertive stance by Cypriot authorities means the project as a whole could be delivered by the end of the year.

The previous deadline set for completion was October 2023. That target – probably intended for public consumption – was announced only a month ago. To put things into perspective, it was way back in December 2019 when Cyprus signed the contract with a consortium led by China Petroleum Pipeline Engineering Co Ltd. The project’s kickoff meeting didn’t take place until September 2020.

“Realistically, we’re now looking at end of 2023 for completion, or beginning of 2024,” Energy Minister George Papanastasiou told the Sunday Mail.

The LNG terminal will include a floating storage and regasification unit (Fsru), a jetty for mooring the Fsru, a jetty-borne gas pipeline and related infrastructure.

Cyprus enters LNG era with FSRU groundbreaking at Vassilikos - PLATTS

10 Jul 2020 | 12:00 UTC Nicosia

Gary Lakes, Editor: Alisdair Bowles

• LNG import terminal to be operational by end-2022
• Terminal to end Cyprus' energy isolation: President
• Chinese-led project backed by European Commission

Nicosia — Cypriot officials hailed the start of a new energy era for the island on July 9 with a groundbreaking ceremony marking the start of construction for a floating storage and regasification unit (FSRU) terminal at Vassilikos.

A terminal and an FRSU, supplied by a Chinese-led consortium, are to be in place and operating by the end of 2022, enabling Cyprus to end its reliance on oil imports to fuel its main power generation plant at Vassilikos, where trading giant VTTI also operates a fuel storage and transshipment center.

Cyprus’ Natural Gas Infrastructure Company secures €80 million financing by EBRD - IN-CYPRUS / CYPRUS NEWS AGENCY

26.JUNE.2020

European Bank for Reconstruction and Development (EBRD) gave the green light for 80 million euros funding to the Natural Gas Infrastructure Company of Cyprus (ETYFA). The Loan Facility will be covering the construction of the Liquefied Natural Gas (LNG) Import Terminal in Cyprus. The financing is of a 20-year duration.

According to an ETYFA’s press release, funding is additional to ETYFA’s already approved financing by the European Investment Bank (EIB). EIB has approved a 150-million-euro funding to ETYFA on June 11th. The total capital expenditure budget of the project is 289 million euros, while ETYFA has already secured a 101 million euros subsidy by the European Commission, through “Connecting Europe Facility” (CEF) and 43 million euros, from the participation of the Electricity Authority of Cyprus (EAC) in the shareholding structure of ETYFA.

“Both the decision made by EIB, and the decision by EBRD highlight once again the trust of the European institutions towards ETYFA and energy authorities in Cyprus”, the press release points out.

The project is considered of major importance for the energy future of Cyprus.

Oslo-based company applies to bring LNG to Cyprus from 2021 - CYPRUS MAIL

April 2, 2020

Elias Hazou

An Oslo-based company has formally applied to bring liquefied natural gas (LNG) to Cyprus starting in the first half of 2021.

In a press release, Höegh LNG Holdings Ltd said its subsidiary, Höegh LNG Ltd, has applied for an LNG infrastructure ownership, operations and development licence in Cyprus.

Their proposal entails the use of a floating, regasification and storage unit (FSRU).

“The plan consists of using one of Höegh LNG’s Fsru’s as a fast track solution for the required fuel switching, thereby reducing air emissions, cutting EU emission taxes, enabling savings on fuel costs and reducing electricity price per KWh for local consumers,” the company said.

Energean seeks to supply natural gas to Cyprus from Israel - REUTERS

NOVEMBER 19, 2019 / 1:15 PM

JERUSALEM (Reuters) - Energean Oil & Gas said on Tuesday its Energean International unit submitted an application to import and supply natural gas to Cyprus starting in 2021.

In its application to Cypriot authorities, it said it sought to supply gas through a pipeline from the Karish block offshore Israel to Vassiliko, Cyprus.

The pipeline would be 215 km (135 miles) long and transport natural gas from the Karish North field, which contains 25 billion cubic meters of discovered recoverable resources.

Total investment, Energean said, will be about $350 million and will be funded by Energean. Provided there are no delays in permitting procedures, the project will allow Cyprus to receive competitively priced natural gas from 2021, it added.

Larnaca fuel storage move on schedule - CYPRUS MAIL

November 12, 2019
Jonathan Shkurko

Larnaca mayor Andreas Vyras said Tuesday the conditions were now right for the relocation of the petroleum and LPG facilities from the coast to Vasilikos to take place.

Vyras said that the relocation of the facilities has always been a priority for the city of Larnaca.

A memorandum of understanding (MoU) was signed by the government and the fuel companies who own the storage facilities to move them to the new terminal by December 2019 and to gas stations around Cyprus by December 2020.

Vyras said the government and the companies were working tirelessly to move the units by the set date to the Vasilikos industrial area, where works have already begun.

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.”

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.

Energean renews Karish-Cyprus gas line bid - OIL & GAS JOURNAL

HOUSTON, May 10 2019

Energean Oil & Gas, London, has submitted an updated proposal to the Cyprus Energy Regulatory Authority to supply gas to the island nation from deepwater Karish field offshore Israel.

The operator proposes to lay a 200-km pipeline from the Energean Power floating production, storage, and offloading vessel, which will handle production from Karish and Tanin fields, to Vasilicos, Cyprus.

Energean first proposed a pipeline between the FPSO and Cyprus last year. The government rejected the proposal and solicited bids for a floating LNG import facility.

In a press release, Energean called its updated plan “supplementary to the LNG import procedures launched by the Cypriot government.” It said it has signed a letter of intent for supply of gas to “private power generation license holders in Cyprus.”

The FPSO, with treatment capacity of 800 MMscfd of natural gas and storage capacity of 800,000 bbl of liquids, is under construction at Zhousan, China (OGJ Online, Apr. 16, 2019).

Energean plans to develop Karish field before Tanin.

The fields are 40 km apart in water deeper than 1,700 m.

East Med Gas Forum ‘evolving into international organisation’ - CYPRUS MAIL

APRIL 18 2019 

ELIAS HAZOU

The East Med Gas Forum (EMGF) will be meeting again in June with the purpose of evolving into an international organisation, energy minister Giorgos Lakkotrypis said Thursday.

Speaking at the 9th Nicosia Economic Congress, Lakkotryrpis said that he hoped the forum – consisting of Egypt, Cyprus, Greece, Italy, Israel, Jordan, and the Palestinian Territories – will take the form of an international organisation.

The forum is necessary in order for eastern Mediterranean gas to be competitive, while member states are discussing issues such as the preferred infrastructure for the optimal exploitation of hydrocarbons wealth.

The region faces many “challenges,” Lakkotrypis said, which is one of the reasons why the United States and the EU support are supporting the EMGF as observers.

CYPRUS: First private power station promises cheaper electricity bills - FINANCIAL MIRROR

15 February, 2019

Cyprus’ energy sector is on the verge of radical changes with the construction of the island’s first private power plant as entrepreneurs promise to deliver cheaper and cleaner energy to households and businesses.

One such newcomer is Power Energy Cyprus (PEC) Ltd. It has laid the foundation stone on Friday for its EUR 200 mln power plant, the first private venture for producing energy with conventional fuel, in the presence of President Nicos Anastasiades.

PEC plans to produce about a quarter of the island’s present capacity, slightly more than what renewable sources (solar parks and wind farms) already contribute to the energy mix. It will bring the cost of energy down as the combined circle power station is to run primarily on natural gas.

The company’s pledge to consumers and businesses was backed by President Anastasiades who stated that the new power plant to be built in Vassiliko (Limassol) will help to reduce the price of electricity.

Cyprus Tenders For LNG Import Terminal - MEES

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DEFA issues tender for construction of LNG import terminal - HYDROCARBON ENGINEERING

09 October 2018

The state natural gas company of Cyprus, DEFA, has issued a tender for the development of a facility for the import, storage and regasification of LNG at Vasilikos Bay near Lemesos.

The tender was made on behalf of the Natural Gas Infrastructure Co. Ltd (ETYFA).

Following the completion of a feasibility study in 2016, the government of Cyprus decided to proceed with the development.

The government requires the completion of the new LNG import terminal by 30 November 2020.

The LNG Terminal will include a floating storage and regasification unit (FSRU), a jetty for mooring the FSRU, a jetty borne gas pipeline and related infrastructure. The LNG terminal has secured a funding of 40% of the CAPEX, up to €101 million, as a grant from the EU under the Connecting Europe Facility (CEF) financial instruments.

Cabinet looking for gas licensees for Block 7 (Updated) - CYPRUS MAIL

October 3, 2018 

George Psyllides

The energy minister announced on Monday Cyprus will be seeking bidders for a €300m project to facilitate natural gas imports and will also invite energy companies to express interest in another offshore field inside the island’s exclusive economic zone.

Cyprus presses on with FSRU despite pipeline proposalProposals for a pipeline linking - INTERFAX

The Vassiliko gas-fired power station in Cyprus

18 July 2018
Verity Ratcliffe

Cyprus is preparing to tender a contract for the supply of an FSRU to be moored at Vassiliko. Plans for the project are progressing despite a proposal to pipe gas to Cyprus from offshore Israel, according to an official at Cypriot state-owned utility DEFA.

Companies will be invited to submit bids within the next few weeks, Andreas Pentaliotis, gas officer at DEFA, told Interfax Natural Gas Daily. After the tender for the FSRU, DEFA will hold two tenders for LNG supply.

Europe: Cyprus to launch tender for FSRU purchase - BUNKERSPOT

20.06.2018

The floating storage regasification unit (FSRU), which will be permanently stationed in Vasilikos harbour, is expected to facilitate LNG bunkering.

The FSRU is a key component of the CyprusGas2EU project, which falls under the European Union’s (EU) CYnergy project that aims to promote the uptake of natural gas in Cyprus and the development of a sustainable and fully functional natural gas market.

In a keynote address during a workshop in Nicosia earlier this week, Energy Minister Giorgos Lakkotrypis, who revealed that a separate tender for the import of LNG would be launched by the end of the year, said that Cyprus2GasEU had received €101 million in funding from the EU for the €250 million project.

‘Essentially, we shall be able, where necessary, to trade LNG between the infrastructures at Vasilikos and the [LNG terminal] at Revythousa in Greece,’ Lakkotrypis was quoted as saying by Cyprus Mail.

Petrogress, Inc. (PGAS) is Strengthening Port Operations in Cyprus - NETWORK NEWS WIRE

December 28, 2017

• MOU to undertake joint venture in Cyprus port operations
• Set to enter upstream business by operating oil platform
• Gaining eligibility to bid for Ghanaian government contracts

A recent announcement, which also appeared in the Greek media, shows that Petrogress, Inc. (OTC: PGAS) is doubling down in Cyprus. Through subsidiary Petrogress Int’l, LLC (“PIL”), the company has entered into a Memorandum of Understanding (MOU) with EDT Agency Services, Ltd., under which the two companies intend to combine operations at the Port of Limassol. The collaboration also extends to future developments at Vassiliko Energy Port, where the Cyprus Port Authority has announced plans for the construction of a $300 million industrial and energy harbor. 

The MOU calls for a 50/50 partnership between EDT and PIL, operating under PIL’s PG Cypyard & Offshore Terminal Services unit. The joint venture will provide support services to supply vessels and offshore exploration and production platforms and will help PGAS serve the E&P needs of major international oil companies in the Cyprus Exclusive Economic Zone (EEZ). The partnership is expected to not only boost PGAS’s revenues, but the company’s profile in Limassol and Vassiliko.