Cyprus to launch tenders for LNG terminal

07:53 - 31 July 2024

Economy

Cyprus will soon launch tenders for the completion of the Liquefied Natural Gas Terminal for electricity generation, despite the termination of a €0.5 billion contract with CPP-METRON Consortium Ltd (CMC), a Chinese-led consortium, and an investigation by the European Public Prosecutor (EPP) over possible tender fraud and misappropriation of EU Funds, Energy Minister George Papanastasiou has said.

Speaking after an extraordinary meeting with the parliamentary committee for Energy, following the launch of investigation by EPP, Papanastasiou said the government aims to complete the LNG import terminal “because it is very important for the introduction of natural gas with the view to reducing the cost of conventional electricity generation.”

He added that following the termination of the contract, government options are “more limited.”

Asked on the way forward, Papanastasiou said the project should be completed one way or another, adding that the Natural Gas Infrastructure Company (ETYFA), a subsidiary of the Cyprus Natural Gas Public Company has opted for reasons of transparency to launch a tender process for the terminal and the jetty.

“The process is underway and an open tender will soon be launched,” he said.

Replying to a question on the Floating Storage and Regasification vessel “FSRU Promitheas” which lies in a shipyard in Shanghai, Papanastasiou said the ship is under the ownership of ETYFA and legal proceedings are underway so that the vessel will be hander to ETYFA.

During the meeting, it was stated that in case the ship will not be delivered to the Cypriot authorities, the government will examine the option of leasing another FSRU once the works for the completion of the terminal facility are completed.

(Source: CNA)

Cyprus to launch tenders for LNG terminal

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