Nicosia faced with energy project crisis
The firm spearheading one of the Republic of Cyprus’ most ambitious energy ventures, the LNG terminal at Vassiliko, finds itself grappling with challenges that pose a threat to its completion.
The festive inauguration of construction back in the summer of 2020 now feels like a distant memory. Fast-forward three-and-a-half years, and the grand project, undertaken by a consortium made up of China Petroleum Pipeline Engineering Co Ltd, Metron SA, Hudong-Zhonghua Shipbuilding Co Ltd, and Wilhelmsen Ship Management Ltd, is not only lagging behind schedule but faces the looming specter of abandonment.
With 101 million euros in EU funding through the Connecting Europe Facility (CEF), Cyprus faces potential repercussions if the project stalls further. The consortium’s recent 17-day suspension of construction has sparked concerns among subcontractors, many of whom are Cypriot entities, left unpaid by the consortium.
The government now stands at a crossroads, contemplating potential intervention to salvage the terminal’s construction through Greece’s DEFA, the major shareholder of the Natural Gas Infrastructure Company (ETYFA) overseeing LNG infrastructure.
