Consortium Faces Delays in Natural Gas Terminal Project

Dispute Intensifies Over Vasiliko Natural Gas Terminal Project

In a recent turn of events, the construction of the Vasiliko natural gas terminal has hit another snag. The CPP-Metron Consortium Ltd (CMC), responsible for the terminal’s construction, has publicly addressed what it perceives as misleading information disseminated by the Natural Gas Infrastructure Company (Etyfa) regarding the project’s progress.

CMC has broken its silence in response to Etyfa’s claims about construction delays, stating that the “Prometheas”, a floating storage and regasification unit (Fsru), has been ready since mid-January 2024 but remains uncollected in China. The consortium has expressed its bewilderment at Etyfa’s inaction, especially given that the FSRU could be utilized commercially in other capacities, potentially generating revenue.

The consortium further detailed that the vessel had successfully completed extensive sea and gas trials, overseen by Lloyds Register and Etyfa representatives. Despite a “Statement of Readiness for Delivery” being issued and a handover ceremony taking place, Etyfa did not attend and has yet to take delivery of the vessel.

CMC emphasized its efforts to engage with Etyfa on logistical aspects of delivering the FSRU to Cyprus, but claimed that Etyfa has disregarded all such communications. The consortium refrained from commenting on the alleged onshore construction delays at the terminal itself, which have reportedly caused work to be paused once again.

The project, significantly funded by the European Commission and EU banks, has been under scrutiny for its slow progress. Despite this, China’s ambassador to Cyprus, Liu Yantao, projected a completion date by the end of the year, with the FSRU’s delivery expected by April or May and onshore works at Vasiliko reaching 50 percent completion.

Etyfa responded to CMC’s statement with surprise, rejecting the consortium’s claims as “completely untrue” and maintaining its commitment to confidentiality provisions. This comes after Energy Minister George Papanastasiou’s warning to CMC earlier in the year and amidst CMC’s legal claim for €200 million against Cyprus at the London court of arbitration.

The ongoing dispute between Etyfa and CMC raises concerns over the future of Cyprus’s natural gas infrastructure development and the potential implications for energy security in the region.