The contract for the development of €290 million liquefied natural gas (LNG) infrastructure, one of the largest energy projects in Cyprus, was signed in Nicosia on Friday.
“The signature has laid the foundations for the implementation of a multi-year effort, which is the commitment of the president of the Republic to his governance programme,” Energy Minister Yiorgos Lakkotrypis said In his address at the ceremony.
The deal is between the Natural Gas Infrastructure Company (Eftaf), a subsidiary of state natural gas company Defa, and the international joint venture JV China Petroleum Pipeline Engineering Co. Ltd, and Metron SA., with Hudong-Zhonghua Shipbuilding Co Ltd and Wilhelmsen Ship Management Limited.
The LNG terminal will include a LNG floating storage and re-gasification unit (FSRU), a floating unit pier, a pier duct and other related infrastructure.
The total value of the project amounts to €290 million. EU funding of € 101 million has already been secured under the Connecting Europe Facility (CEF) funding programme. The EAC will pay €43 million, while the rest will be financed through the European Investment Bank or the European Bank for Reconstruction and Development.
The signing of the contract followed a lengthy and complex tender process overseen by 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.