WASHINGTON: Cyprus is preparing to launch an independent study into importing LNG as Nicosia looks to revive plans for an LNG purchase tender. State-owned Natural Gas Public Co. (DEFA) has invited consultants to submit bids to carry out the research. Up to 10 bids are expected from companies including Gaffney, Cline & Associates, KPMG, Wood Mackenzie, DEP Levant Oil & Gas, DNVGL, Arntzen de Besche and Genesis Oil and Gas. “The objective of the study is, based on the analysis of the various options of LNG supplies, to identify and propose an option/project, an appropriate process and a timetable for the supply of gas to Cyprus [as soon as possible] and before 2020,” the tender documents say.
The consultants will be responsible for proposing the necessary infrastructure requirements. The study will also outline commercial structures and state potential sources of financing for the project. DEFA intends to award the contract soon so the consultants can start work in November and complete the study by February 2017 at the latest. The deadline for bids is 31 October.
The bids will be assessed according to the competencies of the companies and proposed study costs. DEFA has earmarked €250,000 ($272,900) for the study. Cyprus’s previous LNG import plans have failed. DEFA cancelled its last initiative on 7 February after a meeting attended by Cypriot Energy Minister Yiorgos Lakkotrypis, the Cyprus Energy Regulatory Authority, DEFA and the Electricity Authority of Cyprus.
The organisations rejected the proposed LNG supply agreement offered by Vitol on the basis that the company wanted to sell about one-quarter more than the quantities originally proposed, said independent energy consultant Charles Ellinas. Cyprus cancelled the tender, partly because it feared it would end up with more LNG than it needed but also because it could have caused a backlash from other bidders as the country may have been accused of bending the rules for Vitol.
