Cyprus seeks tenders for LNG supplies, gas storage

Cyprus will launch a tendering process for LNG supplies and gas storage infrastructure, according to local reports.

Uchenna Izundu
International Editor

LONDON, June 8 -- Cyprus will launch a tendering process for LNG supplies and gas storage infrastructure, according to local reports.

The government will accept tenders for a temporary offshore storage facility as a stop gap and it also is seeking companies interested in constructing a permanent onshore site.

The LNG supplies and gas storage will help Cyprus to reduce carbon emissions within the European Union. Government spokesman Vasilis Palmas was quoted as saying that the Cypriot cabinet had approved both an LNG regasification terminal and gas storage, but did not give a timeframe.

Rows have broken out among political circles in Cyprus, however on whether it should opt for land-based gas storage or a floating offshore unit. Government officials estimate that an onshore facility could take 5-7 years to complete.

Critics have argued against a floating storage unit, claiming it is a risk as the technology is untested and could be a waste of taxpayers' money. A floating unit is estimated to take as long as 5 years to implement.

Cyprus is committed to using cleaner forms of energy within the EU by 2009. The island relies mainly upon heavy fuel oil for its electric power generation.

Contact Uchenna Izundu at uchennai@pennwell.com.

More in Pipelines & Transportation