IF THE previous government’s timeframes had been kept, a land-based liquid natural gas (LNG) terminal would have been up and running by the end of this month.
This was claim made by Nicos Rolandis – Commerce Minister during Glafcos Clerides’ government – during yesterday’s House Watchdog Committee.
Rolandis, in his first official submission to the Committee’s examination of the procedures followed to bring LNG to Cyprus, said his ministry had examined and surveyed the issue over a period of five years and concluded on a timeframe that provided the construction of the land terminal by December 31, 2007.
He explained that the proposals of an American company for the transportation of natural gas using an undersea terminal from Syria had proved wrong and that was why the decision was made to build a land terminal.
Rolandis also pointed out that 12 Trade Ministers before him since the establishment of the Republic had not touched on the matter due to its complexity
He told deputies that the cost to produce electricity with crude oil was $400 per ton, while the production of natural gas costs $300 for every ton. But using fuel, which would demand the operation of another of the Electricity Authority of Cyprus’ processing terminals, would cost $800 a ton.
DIKO deputy Angelos Votsis was openly critical of the former minister, saying that the procedures for LNG started in 1998 with the initiative of the American company and after three years of “pondering” it was proved that it was impossible to bring natural gas with an undersea terminal.
He added that if the studies to build a land-based terminal had been carried out from the start, then proceedings would have been sped up and Cyprus would now have a land based liquefaction unit.
In another point of contradiction, current Trade Minister Antonis Michaelides clashed with DISY leader Nicos Anastassiades, who initiated the parliamentary debate on the issue.
This time, the two came head to head over the minister’s comments on Auditor-general Chrystalla Yiorkadji’s report on the proceedings followed to bring LNG to Cyprus.
Michaelides said Yiorkadji had exceeded her authority, by going further than just examining the Cabinet’s decision and examining the credibility of the way the issue was handled. This, he said, was a political move.
Commenting on Anastassiades’ description of the whole affair as the “scandal of the century”, Michaelides replied that it was the “myth of the century” and categorically denied there were interests hiding behind the government’s promotion of an offshore terminal.
Anastassiades responded that the Cabinet’s decision was based solely on the criteria set by the company that aims to create the offshore unit.
He also claimed that even President Tassos Papadopoulos had been given false data. He referred to a letter by Papadopoulos to House President Demetris Christofias last May, in which he referred to the completion of a land-based terminal by the year 2011 and not 2014-2015, as the Trade Ministry was now claiming.
A spokesman for the EAC unions said the discussion was proving what the unions had been saying all along, and said they would be examining each detail carefully within the next few days before deciding on how to proceed further. He didn’t exclude the possible of drastic measures.
The production of electricity with liquid natural gas is part of Cyprus’ obligation to the EU and the delays in importing it are not only costing the state millions in damages but also leaving the island open to possible sanctions.
