Progress on Vasiliko LNG Terminal Construction
In a significant move towards energy independence and cost reduction, Cyprus is pushing to complete the construction of the Liquified Natural Gas (LNG) terminal in Vasiliko by the end of 2024. Energy Minister George Papanastasiou highlighted the strategic importance of this project in reducing electricity generation costs during a statement on Monday.
Despite a temporary halt at the end of January due to an appeal by the Chinese-led consortium CPP Metron to a court of arbitration, construction works have resumed. This follows a constructive meeting between Minister Papanastasiou and officials from CPP. The LNG terminal project, backed by the European Union as a Project of Common Interest (PCI), has secured €101 million in funding.
Papanastasiou emphasized the urgency of introducing natural gas for electricity generation, given that the majority currently comes from conventional sources. He also noted the political support from China, acknowledging the project’s significance for both Cyprus and the consortium’s country of origin.
Addressing future energy prospects, Papanastasiou mentioned the government’s anticipation of decisions from the ENI-led consortium regarding the Cronos gas field within the Cypriot Exclusive Economic Zone (EEZ). The Cronos field, estimated to contain between 2 and 3 trillion cubic feet of gas, has shown promising results, especially after the Cronos-1 discovery was confirmed by an appraisal well.
The Minister further stated that an updated development and production plan for the Aphrodite gas field is expected from the Chevron-led consortium by March 31. This plan is to follow the agreed development strategy submitted in 2019, which proposed a floating production facility.
With these developments, Cyprus is poised to make significant strides in its energy sector, potentially leading to more sustainable and cost-effective electricity generation for its citizens.
