LNG terminal Cyprus tender winners

Multinational consortium named for Cyprus LNG construction

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.

“We are pleased to see the successful outcome of the process,” Defa chairman Symeon Kassianides said. “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.”

The LNG Import terminal to be constructed 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.

Source: Cyprus Mail

LNG tender Cyprus

Deadline extended again for LNG tenders

THE Natural Gas Public Company (Defa) has – again – extended the deadline for the submission of bids for infrastructures relating to the import of liquefied natural gas for electricity production.

Defa, by law the sole importer of natural gas, decided to push back the tenders submission date by a little over two months – from January 19 to March 29.

During a meeting held at the presidential palace this week, Defa officials explained that the interested companies had requested certain clarifications on the tender documents.

The project has been broken up into two separate tenders: one for the infrastructures (receiving facilities, a floating re-gasification unit, storage) and one for the purchase of natural gas.

The first tender concerning the facilities is already running. Under the best-case scenario, a contract is expected to be awarded sometime this summer.

According to reports, a change has been made to the tender. Initially, delivery of the infrastructures had been set at a fixed date, November 2020. Now, the terms stipulate that the delivery should be no later than two years after the date on which the contract is awarded. That would push back delivery to the summer of 2021.

The second tender – purchase of the fuel from the spot market – is expected to be launched in February.

Speaking on condition of anonymity, industry sources said it was odd that the infrastructures tender precedes, time-wise, the process for acquiring the natural gas itself.

At the very least, they said, the two tenders should be running concurrently.

That is because the final cost of generating electricity from natural gas will include both the cost of the infrastructures as well as the fuel costs. The stated goal of importing LNG is to bring down the cost of electricity.

The cost of the infrastructures alone is estimated at €300m, while another €200m will be spent on operation and maintenance over a 20-year period. Among the €300m are included the €101m in European Union co-funding.

New GAS terminal tender for Cyprus

Defa publishes tender documents for LNG terminal

Cyprus’ natural gas public company (DEFA) on Friday published the tender documents for the design, construction, and operation of an LNG import terminal that will be located at Vassilikos.

“This is an important milestone for DEFA, and for the people of Cyprus, who will soon benefit

from the cost savings and environmental benefits from the use of natural gas. We expect to issue a request for expressions of interest for the supply of LNG in the coming weeks and a full tender early in 2019,” DEFA chairman Symeon Kassianides said.

The tender documents can be obtained from the e-procurement portal of the Republic of Cyprus.

The €300m 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 will be completed in 2020 and 40 per cent of its cost, or €101m, will be funded by the EU.

Source: Cyprus Mail