NICOSIA – The government on Monday rejected an interim energy solution for the supply of natural gas to Cyprus from Russian firm ITERA.
Energy Minister George Lakkotrypis said after a ministerial committee meeting headed by President Anastasiades that the ITERA proposal was considered too costly.
The crucial interim decision aims at substantially reducing the island’s electricity prices – Europe’s highest.
Insiders had said that the ITERA offer was to be rejected, and that this was problematic from day one.
Officials in Nicosia had made clear said they were looking at all alternative proposals for bringing natural gas onshore from Cyprus’ Aphrodite field for domestic electricity production considering how high prices are.
Last month, the government and a US-Israeli partnership signed a memorandum of understanding for the development of a natural gas liquefaction plant on the island.