Big interest from energy giants for supply of liquefied natural gas in Cyprus

With the participation of 25 companies from the international energy market, the first phase of the bidding process of the Public Gas Company (DEFA) for the submission of an expression of interest for the supply of liquefied natural gas to Cyprus ended, with a strong international interest from energy giants.

LNG supply tender for DEFA in CYPRUS

According to DEFA’s announcement, “the intense competition for LNG supplies confirms that the strategic choice to set up the FSRU is moving in the right direction”.

Powerglobe LLC participates on the current tender on behalf of Qatar, the world largest producer of liquefied natural gas. A number of global suppliers are seeking to participate in the next stages of bidding and negotiating, as Gunvor International, Naturgy LNG Marketing Limited, Centrica LNG Company Limited, Powerglobe LLC, Endesa Energia SA, Cheniere Marketing International LLP, Equinor ASA, Novatek Gas & Power Asia Pte Ltd, Shell International Trading Middle East Ltd, Enel Global Trading, Eni Trading & Shipping SpA, Total Gas & Power Asia Private Ltd, Osaka Gas Kabushiki Gaisha, Repsol LNG Holding SA, Petronas LNG Ltd, BP Gas Marketing Limited, Vitol SA, BB Energy (ASIA) Pte Ltd, Mytilineos S.A., Uniper Global Commodities SE, Marubeni Corporation, SONATRACH and Public Gas Corporation (DEPA) S.A., Eni SpA (Gas & LNG Marketing and Power), Glencore Energy UK Ltd and Mitsui & Co. Ltd.

Reportedly, DEFA, following the international practice of supplying liquefied natural gas, decided to launch an open call for proposals in June 2019. The procedure relates to the pre-selection of LNG suppliers on the one hand to purchase contracts allowing on the other hand for supplier selection and contract signing for basic quantities, is added.

As stated by the president of DEFA, Dr. Symeon Kassianidis, “Turning to gas is not only our national strategy but also our European obligation to achieve the environmental and energy goals set by the European Union. And the fact that the competition has resulted in numerous and high-profile entries fills us with optimism about competing prices. “

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LNG facility in progress

DEFA is expected to proceed to the next stage of bidding for the pre-selected ones and then to begin the procedures for the procurement of “spot” freight contracts at the beginning of the new year.

As regards the tender for the development and operation of LNG infrastructures, the procedure proceeds smoothly as there was no objection from the other tenderers to the Bidding Review Authority, it is stated.

This development entitles the Natural Gas Infrastructure Company (ETFFA) to proceed on the basis of the plans and the existing timetable, inviting the first ranked consortium to sign the contract shortly thereafter, the announcement concludes.

Sources: NGD, QGN, DEFA, POWERGLOBE, POLITIS, REUTERS, CNN, BBC, CYPRUS NEWS.