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SHAPING THE NATURAL GAS MARKET OF CYPRUS
NATURAL GAS PUBLIC COMPANY (DEFA)
Dr. Symeon Kassianides Chairman Natural Gas Public Company New York – 11/29/2017
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1. Current Status
2. Gas Imports – Previous Attempts/Processes
3. Latest Developments
1. LNG Supply Options Study
2. CEF Synergy – “CYnergy” Project
3. New LNG Project (LNG Procurement and Infrastructure Development)
4. NG Pipeline Network
4. Way Forward
SHAPING THE NATURAL GAS MARKET OF CYPRUS
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• Cyprus has an energy isolated market (no interconnected capacity)
• High Dependency on Liquid Fuels (Power Gen)
• 3 Main Conventional Power Stations Owned by EAC, Total 1478MW
• Dual fuel (LF & NG) generation capacity 830MW at VPS
• Increasing Renewable Penetration (Solar, Wind)
• NG Market Regulation under CERA
• Cyprus Law - Harmonised with EU Directive 2009/73/EC
• Derogations may apply due to Isolation & Emergent Market
• Possible monopolistic operation for early years
1. CURRENT STATUS
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• 3 Previous Attempts
• The first was for a Long Term LNG Supply & On-Shore Regas Terminal
• Following Leviathan And Aphrodite Discoveries, 2 additional Interim Gas Supply Processes for the period up to indigenous gas arrival
• The unsuccessful conclusion reasons of the processes were analysed, indicating the main issues that must be dealt with for the future – Duration
– Quantities
– High Demand in Flexibility
– Prevailing market conditions at the time
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2. GAS IMPORTS – PREVIOUS ATTEMPTS / PROCESSES
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3.1. DEFA’s LNG Supply Options Study – Target: NG supply by 2020, due to environmental constraints relating to emission
limits
– DEFA analysed and compared all options for LNG Supply
– Optimum way forward (accounting for cost, time, flexibility) is through floating storage and regas facilities
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3. LATEST DEVELOPMENTS
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3.2. CEF Synergy – “CYnergy” Project – Holistic Approach for NG Market development and penetration of use of NG to
Energy and Transport sectors
– Total Proposal Cost ≈€7,5m – CEF EU Co-financing ≈€4,5m (60%)
– Implementation of CYnergy proposal is aligned with NG supply target date – by 2020
– All CYnergy resources have been mobilised and successfully submitted a CEF Energy Proposal for Infrastructure Development of the PCI “CyprusGas2EU” and the timely completion of the project
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3. LATEST DEVELOPMENTS
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3.3. New LNG Project (LNG Procurement and Infrastructure Development) – 2 Separate processes
• LNG Procurement, Public Tender to be announced by Q1 2018
• Infrastructure Development, Public Tender to be announced by Q1-Q2 2018
– LNG Project infrastructure requirements have been included in the new CEF Energy Call proposal submission by MECIT, MTCW, DEFA, CPA aiming to secure a grant for the PCI CyprusGas2EU
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3. LATEST DEVELOPMENTS
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3.3. New LNG Project - Infrastructure Requirements – Marine Works: Jetty for FSRU berthing and LNG transfer activities and an emergency shelter for
the FSRU
– Floating Storage and Regasification Unit (FSRU) – Gas export system and Loading Arm (inclusive of; meters, Gas compressors, filters, heaters, venting system, quick connection, export arm pipelines), permanently berthed in Vassilikos bay
– Jetty borne Gas Pipeline (inclusive of; gas pipelines, valves) connecting the FSRU to the receiving point onshore
– Onshore Gas Pipeline (inclusive of; pipeline, inline valves, cathodic protection systems, civil works), connecting the receiving point onshore to the downstream delivery point
– Pipeline Storage Array (inclusive of; inlet and outlet manifolds, inline valves, protection systems, civil works), able to store Natural Gas in gaseous form in the required operational pressure ranges adjacent to Vassilikos power station
– Onshore Above Ground Installation (AGI) – Metering Station
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3. LATEST DEVELOPMENTS
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3.3. New LNG Project – Project Layout
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3. LATEST DEVELOPMENTS
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3.3. New LNG Project – Preliminary Cost Estimate – Consultation with all Cypriot Operating
Financial Institutions
– 10 LoIs have been received
– GoC Decision for Electricity Authority of Cyprus (EAC) participation in the infrastructure SPV, up to 30%
– EAC provided a LoI
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3. LATEST DEVELOPMENTS
Total
(in EUR)
FSRU & Metering Station 150.664.052
Offshore Pipeline 11.589.542
Local Buffer & Onshore Pipeline 11.589.542
Jetty/Tresle Structure 54.199.346
Breasting & Mooring Dolphins 16.209.150
Loading/Unloading Platforms 16.715.686
Breakwater Extension 41.839.869
Jetty Structure for the Emergency Shelter
1.013.072
Shelter Breasting & Mooring Dolphins 6.179.739
Dredging 20.000.000
Leeside Breakwater 10.000.000
Total Investment Cost 340.000.000
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3.4. NG Pipeline Network – DEFA appointed GNFe for Engineering Consultancy Services for the NG Pipeline
Network Development in 2010
– Feasibility Study completed in 2012
• Revised in 2016-2017
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3. LATEST DEVELOPMENTS
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3.4. NG Pipeline Network – Various Studies are
included in the Feasibility Study
• Gas Demand
• Route Selection
• Network Sizing
• Preliminary EIA & Risk Assessment
• Economic & Financial Analysis
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3. LATEST DEVELOPMENTS
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3.4. NG Pipeline Network – Phase A’ – Power Gen
– Route Selection
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3. LATEST DEVELOPMENTS
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• LNG Procurement, Public Tender to be announced by Q1 2018
• Infrastructure Development, Public Tender to be announced by Q1-Q2 2018
• Open Season Process in early 2018, for the determination of demand by all users, committed quantities of NG and spatial allocation users
• FEED for the Pipeline Network (following completion of Open Season and generation expansion plan study of EAC)
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4. WAY FORWARD
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Thank You!
Dr. Symeon Kassianides
Chairman, Natural Gas Public Company
Tel: +357 22761761
Email: [email protected]