articles | 02 June 2015

Cyprus to pick gas supplier

The Cyprus Gas Public Company (DEFA) will pick the winning bidder for the temporary supply of natural gas to the island shortly, according to press reports.

Negotiations over price will then start in earnest.

DEFA first announced four months after event in November 2014 that it had “examined and completed the evaluation of the revised commercial and financial proposals” the previous July.

The unannounced shortlist included Delek, a partner in the Cyprus offshore Aphrodite field in Block 12 as well as in Israel’s Leviathan and Tamar fields; a Greek consortium known as M&M; Dutch company Vitol; and a consortium led by SOCAR of Azerbaijan.

DEFA has given no information since the November 2014 press release, but Delek has made statements announcing the frequent postponements of a final decision.

The delays have raised expectations that Delek will, in the end, be the preferred bidder. Delek and Noble’s ability to export gas from Tamar or Leviathan were thrown into doubt in December when the Israel Antitrust Authority essentially ruled out exporting from both fields.

Now that the Israeli elections are over, there are reports that the government has come to an arrangement with the companies.

This prompted the director of the Antitrust Authority, David Gilo, to resign after disagreements with the Israeli government over the issue.

Cyprus President, Nicos Anastasiades will visit Israel on June 15, 2015.

Source: InCyprus

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