NICOSIA - The government looks to import gas for electricity production by January 1, 2015 as an interim solution until the island is able to exploit its own reserves.
The use of natural gas in power plants is expected to reduce the price of electricity, though the reduction will not be as drastic as when gas starts to flow from offshore.
During a briefing with the Parliamentary Trade Committee on the handling of the hydrocarbon reserves in the exclusive economic zone of Cyprus, Commerce Minister Neoclis Sylikiotis said that negotiations to import gas as soon as possible are being conducted by the Natural Gas Public Company (DEFA) and the Electricity Authority (EAC).
Sylikiotis mentioned that DEFA and EAC made the announcement in October and 14 out of 17 companies that expressed their interest have been shortlisted and are expected to submit their proposals by February 4.
The Minister said the arrival of natural gas by January 1, 2015 will provide a temporary solution for the reduction of the production cost of electricity which will benefit citizens and the economy at large.