5/05/14 | Cyprus prepares for its energy autonomy

Energy Security Treaty seeks to establish the Cyprus until 2016, and until then expected to implement
the so-called "interim solution" for the supply of natural gas that would be used to produce electricity.
The relative competition of DEFA (Natural Gas Public Company) evolves in a battle of giants, as
manifested investment interest by depositing four deals from the biggest players in the energy trade in
the world. Among those claiming the contract includes the Greek interest consortium M & M Gas -
Trafigura - Metka.
The famous "interim solution" is an important first step in modernizing the energy system of the island,
creating the market for natural gas, fuel, ie, that the next decade will be produced from the deposits of
Cyprus. In the period up to the commencement of commercial production, the annual requirement for
imports are estimated at 400 million euros.
As regards the four "mnistires' are:
The Dutch Vitol, which descends autonomously with its own proposal and has in its arsenal private
terminal fuel manufactured at the Royal. The facility will serve as a basis for wider active stiriopoiisi
group, which sold in 2013 over 125 million tons of crude.
The M & M Gas, which is the common gas company groups Motor Oil Hellas and Mytilene (37.5%), along
with the construction company Metka (27%) and the Dutch giant Trafigura (37,5%), which is the
company with the highest turnover in traded goods (133 billion dollars).
Leader of the consortium, which plans to build a floating station gasification (FSRU) is the M & M Gas,
while already secured agreements with both gas suppliers (information wants to be consistent with the
largest supplier in the world) and with company Liquefied gas ( LNG carrier) that manages dozens of
ships.
The consortium C Gas, which consists of SOCAR and two Maltese families and business that intends to
supply the Cyprus-like Malta-gas from Kazakhstan and Azerbaijan.
The solution promoted by the consortium involves the construction of a floating storage and onshore
terminal with significantly higher construction costs.
The Israeli Delek subsidiary of Avner, which suggest, according to the information they have seen the
light of day, the direct supply of gas by pipeline from the Royal, the deposit Tamar.
Greek candidacy
The consortium's bid under the M & M aims to create synergies both with Greek natural gas market and
the Revithoussa Terminal. Moreover, the needs of Cyprus in gas estimated to have significant variations,
which do not allow contractualization of the total requirements of the country (6-10 LNG ships per
year). This means that for peak loads should be sought quantities in the international spot market,
where higher loads secure better discounts. The offer was made by the consortium is part of the
strategy of M & M Gas to become a regional player in the gas market for the wider Mediterranean
region.
05/05/2014
Source: www.capital