Globes: Israeli cos in pole position for Cyprus gas tender
On Saturday, Cyprus's Natural Gas Public Company (DEFA) published an Invitation Document for proposals for the supply of natural gas for a period of up to 10 years, beginning on January 1, 2016. The gas is intended for use by the Vasilikos Power Station on the island's south coast. The tender is for the supply of 0.6-0.8 billion cubic meters (BCM) of natural gas a year.
Cypriots currently pay the highest electricity prices in Europe because all the island's electricity is generated by diesel. The switch to natural gas should save Cyprus $300 million a year. The country has not yet recovered from the debt crisis that forced it to seek EU aid.
The new tender follows the cancellation of a previous tender, which was won by Russia's Itera Group, in late 2013. Itera was due to supply liquefied natural gas (LNG) at $14.75 per million British Thermal Units via a floating storage and regasification unit (FSRU). Energy majors that specialize in LNG purchases, such as BP plc (LSE; NYSE: BP), the natural gas supplier to Israel Electric Corporation (IEC) (TASE: ELEC.B22), are expected to participate in the present tender.