Step closer to establishment of natural gas market in Cyprus

The 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 has emerged as the preferred bidder in a tender for the construction of infrastructure required for the introduction of natural gas in Cyprus, authorities announced today.

The project’s planned LNG import terminal includes a Floating Storage Regasification Unit (FSRU), a jetty for the mooring of the FSRU, jetty borne and onshore pipelines as well as additional facilities.

The LNG Import Project is co-financed by a grant from the EU Connecting Europe Facility (CEF) financing instrument.

The tender’s result is the outcome of a lengthy and complex tender process overseen by DEFA in cooperation with external industry experts, amongst whom were highly experienced technical, legal, commercial and financial experts.

The preferred bidder needed 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.

The winning consortium is soon expected to be invited to Nicosia for the finalization of the process and the signing of the contracts with ETYFA (Natural Gas Infrastructure Company).

A number of consortiums featuring major companies active both in Europe and internationally participated in the tender process.

DEFA Chairman, Dr. 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.”