Three consortia running for Cyprus LNG terminal construction

The Natural Gas Public Company of Cyprus (DEFA) has received proposals for the construction of an LNG import terminal in Vasilikos Bay, near Limassol.

DEFA said that this completes the first step of the tender procedure, with three international consortia emerging as runners for the deal.

Namely, the proposals were submitted by the China Petroleum Pipeline Engineering JV consisting of CPP, Aktor, and Metron; the second was made by a consortium between Samsung, Posco E&C, Mitsui O.S.K. Lines, and Osaka Gas.

The final proposal was submitted by the so-called European Consortium consisting of Damco Energy, Enagas Services Solution, GasLog LNG Services, SNAM, and Terna.

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.

According to DEFA, the LNG terminal will be completed in 2021 and part of the required funding of the capex is already secured through a grant from the EU under the Connecting Europe Facility (CEF) financial instrument.

Symeon Kassianides, chairman of DEFA, said: “The successful result of the competitive process for the implementation of the infrastructure in order to import natural gas in Cyprus, as well as the great interest shown for this important energy Cyprus 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 in Cyprus.