THE government yesterday decided to speed up proceedings for the creation of a land-based Liquid Natural Gas facility, while at the same time opening tenders for an offshore unit for a period of five years.
Government Spokesman Vasilis Palmas announced the unanimous Cabinet decision yesterday.
“With the information it had in front of it, the Cabinet estimated there would be a significant time difference between the construction of the land-based facility and the timeframe in which Cyprus is obliged to introduce natural gas in 2009,” Palmas said, referring to Cyprus’ obligations to the EU.
Taking this into consideration, he added, the Cabinet “has decided that in the meantime it will attempt to secure natural gas for the island’s needs, provided that prices are beneficial to the economy and consumer.
“To succeed in this aim, the Cabinet has decided to open tenders for the supply of natural gas with an offshore method and for a period of five years.”
Palmas said the government wished for the EAC to be part of the supply procedure.
He refrained from commenting on whether the EAC Board’s reactions had been discussed during the meeting, saying only that “we should wait for the reactions to the decision first and then there will be time to discuss the various related matters”.
But he did stress that the only body responsible for making decisions was the Cabinet.
EAC unions yesterday repeated their opposition to an offshore LNG unit, which management and unions have consistently argued against, saying such technology had never been used before.
However, EAC Chairman Charilaos Stavrakis, who on Tuesday threatened to resign if the Cabinet decision went against the EAC’s position, last night expressed his satisfaction.
“I am satisfied to a great degree,” said Stavrakis. “I feel that the EAC’s opinions have been adopted to a very large degree, meaning that a land-based facility is in the long-term the best, most secure and economical for the Cyprus public.”
But the unions were of a different opinion.
Accusing the government of “surrendering the EAC to the hands of foreign interests”, union spokesman Andreas Panorkos said yesterday: “With the decision, they are drowning any attempt for a land-based facility.”
He added that all the unions would meet today to determine their next moves.
“The opinions of the EAC board and the unions are two different things, we don’t agree on everything,” Stavrakis said in response.
“I believe the decision that was taken is very close to the EAC board’s positions so I don’t see why we should react.”
He added: “We must see the final report of the Cabinet’s decision, because all we have now is information from the media.
“We will examine it – because every comma counts – see how the offers will begin, what the EAC’s role will be in it and what percentage will belong to the EAC.”
