Intense international interest for Cyprus’ energy market

The first stage of DEFA’s open competition for submitting an Expression of Interest for the supply of liquefied natural gas (LNG) has now been completed.

With considerable interest from the international markets the Cyprus’ Gas Company’s (DEFA’s) first stage tendering process for the supply of liquefied natural gas (LNG) has now been completed. The intense market competition for LNG supplies confirms that the strategy to acquire an FSRU was a decision toward the right direction.

According to a statement, twenty-five suppliers, among the most dominant in the global LNG market, are seeking to supply gas to DEFA and have submitted the prerequisites to qualify for the next stages of bidding and negotiation.

Bidders / suppliers claiming their participation in the next stages of bidding and negotiating are:

Gunvor International B.V. Amsterdam

Naturgy LNG Marketing Limited

Centrica LNG Company Limited

EndesaEnergia S.A.

Cheniere Marketing International LLP

Equinor ASA

Novatek Gas & Power Asia Pte Ltd

Shell International Trading Middle East Ltd

Enel Global Trading

Eni Trading & Shipping S.p.A.

Total Gas & Power Asia Private Ltd

Osaka Gas Kabushiki Gaisha

Powerglobe LLC

Repsol LNG Holding S.A.

Petronas LNG Ltd

BP Gas Marketing Limited

Vitol SA

B.B. 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

Mitsui & Co. Ltd

DEFA, following customary international practice for the supply of LNG, launched an open call for Expression of Interest in June 2019. Through this process, DEFA shall pre-qualify and proceed to contract with the LNG suppliers for the procurement of both “spot” cargos and basic quantities of gas. DEFA is expected to proceed to this next stage of the process at the beginning of the New Year

“Turning to natural gas is not only our national strategy but also our European commitment to meeting the environmental and energy goals set by the European Union. The fact that the competition has resulted in numerous and high-profile entries, makes us optimistic that we will also obtain competitive pricing,” said DEFA President Dr. SymeonKassianides.

With regards to the outcome of the evaluation of the tender for the construction and operation of the LNG infrastructure at Vassilikos, no challenge within the deadline was raised with the Tender Review Authority. As scheduled, the Natural Gas Infrastructure Company (ETYFA) shall invite the first ranked consortium to sign the contract in the very near future.