Ongoing Talks for Vasiliko LNG Terminal with Chinese State-Owned Company

President Nikos Christodoulides has firmly dismissed any notion of a “velvet divorce” with the Chinese state-owned company CPP regarding the Vasiliko liquefied natural gas (LNG) terminal. “Efforts continue,” he assured a group of reporters on Saturday.

Christodoulides was addressing questions spurred by an article in Phileleftheros, which suggested a potential amicable split between Cyprus and CPP after prolonged disputes over the Vasiliko LNG terminal. “I would not say we are discussing a ‘velvet divorce’. We continue our efforts. There are three aspects: the ship, the terminal, and the floating storage and regasification unit (Fsru),” he explained. “We are working towards finding a solution that will allow the project to continue.”

Ongoing Talks and Potential Compromises

Phileleftheros cited unnamed sources indicating that talks were ongoing about how the ‘divorce’ might be finalized, with a potential compromise for the Fsru still on the table. Last week, Christodoulides refuted claims that the Vasiliko liquefied natural gas (LNG) project was “shipwrecked,” countering widespread speculation about the project’s increasingly uncertain future.

In an effort to resolve the issues, Christodoulides had a two-hour meeting with Chinese ambassador Liu Yantao and Energy Minister George Papanastasiou, although no statements were made following the discussions. Meanwhile, CPP has taken legal steps, submitting a statement of claim before a London arbitration court to recover increased costs from the Republic of Cyprus due to technical problems and delays plaguing the project.

The audit office has described the management of the Vasiliko project as “tragic,” highlighting that it has already cost taxpayers €542 million. The delays and technical issues have not only inflated costs but also revealed serious violations of public contracting procedures, potentially involving criminal responsibility.

Despite these challenges, Christodoulides remains optimistic about finding a resolution that will allow the Vasiliko liquefied natural gas terminal to move forward successfully.

liquefied natural gas terminal

What are the current challenges faced by the Vasiliko liquefied natural gas terminal project involving CPP?

The Vasiliko LNG terminal project faces several challenges, including regulatory hurdles, environmental concerns, and geopolitical tensions. Additionally, securing adequate financing and managing construction timelines amid global supply chain disruptions are significant obstacles impacting the projects progress.

Can the Vasiliko liquefied natural gas terminal project proceed without a partnership with CPP?

Send a request and get a free consultation:

Business Cyprus News, Dig Deeper Into Court Assistance

Thanks for the apply!
We will get back to you within 1 business day
In the meantime, you can get a free consultation from our AI assistant:​