The Republic of Cyprus has received preliminary approval of € 101 million from the European Commission to finance infrastructure projects for the import of liquefied natural gas, said Minister of Energy, Trade, Industry and Tourism Giorgos Lakkotrypis, noting that this funding is the equivalent of around 40% of the infrastructure construction costs.
Answering questions after Wednesday’s cabinet meeting, Lakkotrypis said together with the Minister of Transport, they jointly applied under the mechanism “Connecting Europe Facility (CEF)” to fund infrastructure projects that are necessary for the import of liquefied natural gas.
The Minister explained that they received a notice, about a week ago, that the application has been granted preliminary approval, subject to the approval of the Member States, noting it concerns € 101 million which is essentially about 40% of the cost needed for the infrastructure.
The Minister also revealed that the application for port facilities has been rejected but the government will find an alternative way to find the funds.
He said the 101 million euro is a decisive step in the direction of importing LNG for electricity, adding that the procedure commenced by the Natural Gas Public Company (DEFA), the hiring of advisors and the Commission funding will contribute to the success of the project.
Lakkotrypis will meet on Wednesday with the Cyprus Energy Regulatory Authority and DEFA to discuss LNG issues and the two tenders that DEFA will run within 2018.
Answering another question, the Minister of Commerce said that “a second project under the same mechanism submitted by a consortium running East Med, IGI Poseidon, dealt with the detailed technical studies or what is called, Front End Engineering and Design for the East Med Gas Pipeline.
The European Commission, he said, has given its preliminary approval for 35 million euro, noting it is a very important amount that aims to show the strategic significance of the pipeline for Europe.
Regarding the East Med, Lakkotrypis said studies on these matters are underway and all options will be examined.
Asked about the agreement signed on Tuesday as part of the Greece, Cyprus, Jordan Trilateral Summit, the Minister said it concerns mainly renewable sources of energy and an agreement by the three countries for the exchange of know how to promote this sector.
They also examined issues relating to hydrocarbons and there are some ideas that will be further examined in Athens or Amman.