Cyprus Seals Deal for LNG Terminal
A Chinese-led consortium has received a contract to construct Cyprus’ first LNG import terminal, local media reported on December 13.
A contract worth €290mn ($323mn) was signed between Cyprus’ state-owned Natural Gas Infrastructure Co. (Etifa) and a group consisting of Chinese firms China Petroleum Pipeline Engineering (CPP) and Hudong-Zhonghua Shipbuilding, Greece’s Metron and Norway’s Wilhelmsen Ship Management. They were selected as preferred contractors for the project in August, after outbidding South Korean and Japanese firms in a tender.
Cypriot energy minister Yiorgos Lakkotrypis commented at a signing ceremony that by importing LNG, Cyprus would ensure its energy security and reduce its power prices. The island nation generates electricity using mostly diesel, but wants to switch to gas to cut costs and emissions.
The proposed LNG terminal is due online in 2021. Cyprus has made several previous attempts at advancing the project, but each time has failed to secure necessary funding. Last year it secured EU grants and loans that cover the bulk of its cost, however.