Sources say that Cyprus is considering ending the monopoly on gas imports to tackle project delays.
Cyprus is looking for a way to quickly resolve the serious delays that have been experienced in getting natural gas to the market.
The efforts to introduce natural gases to the local market has been plagued with delays since years. The latest setback was a legal dispute between Cyprus and a Chinese group over a half finished liquefied gas import terminal (LNG).
Cyprus, despite finding its own gas offshore in 2011, currently relies primarily on heavy fuel oil for electricity generation. 77% of this is produced by the dominant Electricity Authority of Cyprus.
Industry sources claim that the Cypriot Energy minister George Papanastasiou asked regulators to examine the possibility of removing the current protected status on the market, and any legal arrangements required.
This move will remove the monopoly held by the Cyprus Natural Gas Company, DEFA, formed in 2008. It will also reduce the cost of electricity for consumers.
George Petrou, Chairman of the EAC, told the state radio that the removal of the status would allow it to explore other options and solutions for the introduction natural gas.
The plans for the island to introduce natural gases via a terminal on the southern coast of Cyprus in Vassilikos were thrown into disarray in early this year due to a legal dispute between the Chinese consortium, the Cypriot government agencies and an arbitration process pending in London.
The Cyprus Ministry of Energy sent a "notice of violation" this week to a Chevron led consortium for delays in the development of Aphrodite, a 3.5 trillion cubic foot field offshore Cyprus.
The consortium, including Israel's NewMed Energy as well as a local Shell unit, responded Monday by saying that they would be presenting an updated development plan within days.
Papanastasiou met with Egyptian Petroleum Minister Karim Baadawi on Thursday. Discussions focused on strengthening partnerships.
He wrote about them in a blog post on X. (Writing and editing by Michele Kambas)
(source: Reuters)
