A SIMMERING row boiled over yesterday between the government and opposition MPs on the nature of a planned state hydrocarbons corporation.

The showdown came during an otherwise routine briefing by Commerce and Industry minister Neoclis Sylikiotis before the House Commerce Committee on developments on the natural gas front.

The point of contention concerns the method of incorporation of the hydrocarbons company, which will be 100 per cent state-owned and will handle all aspects of natural gas, including import, liquefaction, transport and export.

To deprive the Christofias administration of controlling lucrative gas distribution contracts, parliament, with the exception of the ruling AKEL party, earlier this year decided to divide the job between the Public Company for Natural Gas (DEFA) and the Energy Regulatory Authority (CERA). DEFA will import, distribute and supply natural gas locally, while CERA will be in charge of exporting natural gas, in addition to its regulatory role.

Yesterday’s spat broke out when Sylikiotis informed legislators that the government intends to establish the state hydrocarbons company as a public entity governed by private law. It will then be registered like any private company with the Registrar of Companies.

Opposition MPs, however, want legislation in place that would govern the company so that parliament can exercise oversight.

The Commerce Minister informed deputies that, having consulted the Attorney-general, no legislation is required for the establishment of a company governed by private law. He said the only other mode of incorporation in Cyprus is to set up a public-law company – such as a semi-governmental organisation – but this is not the government’s intention.

Lawmakers were not convinced this is the case. Greens MP George Perdikis called for a meeting today between deputies, Sylikiotis and the Attorney-general to further probe the matter and explore a possible middle-of-the-road solution.

Sylikiotis responded to the proposal with a flat “No,” Perdikis later told the Mail. His response only served to heighten MPs’ misgivings that the minister was seeking to hide something.

Perdikis said also that deputies are considering drafting a bill for the hydrocarbons company anyway.

Chairman of the Commerce Committee Lefteris Christoforou (DISY) later told newsmen that parliament would support the government in the natural gas venture provided however that “the public and national interest is served”.

During the same briefing, Sylikiotis said 2013 was critical for Cyprus’ natural gas plans as a number of developments would converge that year: Noble’s appraisal drilling in Block 12, the awarding of licenses for the remaining offshore blocks and preparations for a natural gas liquefaction plant and supporting infrastructures.

If all these were on track, Cyprus would be ready to begin exporting gas as of 2019, he said.

Published by : www.cyprus-mail.com