All parties but AKEL showed a red card to Commerce Minister yesterday in relation to the signing of a 20-year contract with Shell for the natural gas supply. Mr. Paschalides’ contacts with the parties brought up serious objections for the duration and the cost of the contract with the multinational company.
Sources who attended the meetings yesterday told StockWatch that the government failed to convince DIKO too and, therefore, it is seriously considering reducing the duration of the contract from 20 years to five or ten years.
This is deemed necessary by the parties due to the possible exploitation of natural gas deposits in the sea of Cyprus as well as the safeguard of natural gas from the neighbouring Israel.
The possibility that the government will change its choice for the supplier seems distant, since Shell’s offer was by far the lowest.
Some insist, however, that there are other lower offers on the table that must be reviewed.
Persons who attended the deliberations on Tuesday support that if the duration of the contract is reduced, the supply prices by Shell will not be affected.
The agreement allegedly reached by DEFA is of €6 million for 20 years.
According to DIKO President, Marios Karoyian, the questions are many and there are many issues that must be clarified but there are issues that the approach is totally different.
“There are certain parameters that must be co-calculated and which are related to the duration and other issues that have not been calculated”, he said.
DISY President, Nicos Anastasiades, who decided to call an extraordinary meeting in his party to examine what the Minister had stated earlier, criticized the government for failing to negotiate with countries or companies whose offers were exceptionally lower.
“The offer of Israel was not examined at all. The 20-year contract will hem in the Cyprus economy and the Cypriot consumer in much higher energy prices”, he said.
“Those prices could have been avoided if the government had negotiated with all suppliers”, he noted.
The only party that is in full agreement with the preliminary contact is AKEL. Its General Secretary, Andros Kyprianou talked about ‘hidden’ interests behind the parties’ concerns and efforts to affect the procedure.
“Unfortunately, I have observed that many efforts have been made to affect the procedure, with approaches that do not fall under the moral administration”, he said.
“We must not allow the incentives or interests to affect the agreement”, he noted.
EVROKO expressed its reservations on the cost and duration of the contract together with the natural gas deposits in Cyprus.
“We are not convinced that this approach is to the benefit of Cyprus and the Cypriot citizen”, it stressed.
The Minister is expected to inform EDEK and the Ecologists today, while the final decision will be taken by the Council of Ministers.
Sources who attended the meetings yesterday told StockWatch that the government failed to convince DIKO too and, therefore, it is seriously considering reducing the duration of the contract from 20 years to five or ten years.
This is deemed necessary by the parties due to the possible exploitation of natural gas deposits in the sea of Cyprus as well as the safeguard of natural gas from the neighbouring Israel.
The possibility that the government will change its choice for the supplier seems distant, since Shell’s offer was by far the lowest.
Some insist, however, that there are other lower offers on the table that must be reviewed.
Persons who attended the deliberations on Tuesday support that if the duration of the contract is reduced, the supply prices by Shell will not be affected.
The agreement allegedly reached by DEFA is of €6 million for 20 years.
According to DIKO President, Marios Karoyian, the questions are many and there are many issues that must be clarified but there are issues that the approach is totally different.
“There are certain parameters that must be co-calculated and which are related to the duration and other issues that have not been calculated”, he said.
DISY President, Nicos Anastasiades, who decided to call an extraordinary meeting in his party to examine what the Minister had stated earlier, criticized the government for failing to negotiate with countries or companies whose offers were exceptionally lower.
“The offer of Israel was not examined at all. The 20-year contract will hem in the Cyprus economy and the Cypriot consumer in much higher energy prices”, he said.
“Those prices could have been avoided if the government had negotiated with all suppliers”, he noted.
The only party that is in full agreement with the preliminary contact is AKEL. Its General Secretary, Andros Kyprianou talked about ‘hidden’ interests behind the parties’ concerns and efforts to affect the procedure.
“Unfortunately, I have observed that many efforts have been made to affect the procedure, with approaches that do not fall under the moral administration”, he said.
“We must not allow the incentives or interests to affect the agreement”, he noted.
EVROKO expressed its reservations on the cost and duration of the contract together with the natural gas deposits in Cyprus.
“We are not convinced that this approach is to the benefit of Cyprus and the Cypriot citizen”, it stressed.
The Minister is expected to inform EDEK and the Ecologists today, while the final decision will be taken by the Council of Ministers.
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