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The year 2025 is shaping up to be pivotal for the long-delayed PV terminal project in Vasilikos, following last year’s setback caused by the withdrawal of the Chinese consortium CMC, according to a report by Apostolos Tomaras published in this Sunday's Kathimerini. Completing the project is now a top government priority to ensure natural gas (F.A.) can be used for electricity generation and to mitigate the negative effects caused by other failed investment ventures.
The project’s owner, ETYFA, is pushing to finish the onshore PV infrastructure while simultaneously addressing the delayed delivery of the floating storage and regasification unit (FSRU) ship, PROMETHEAS. December is expected to be a critical month for progress on both fronts, determining whether the infrastructure will be operational by 2025 or early 2026.
Onshore Work Update:
CMC completed about 60% of the Vasilikos project, leaving 40% unfinished, including work on the pier and terminal infrastructure. Since CMC's exit, three major Greek companies—ABAX, GEK TERNA, and AKTOR—have shown interest in taking over the project. These firms have formally notified the Energy Ministry of their willingness to complete the work. Despite their enthusiasm, the selection process will follow a formal tender procedure rather than a direct contract award.
To advance the project, ETYFA is finalizing the appointment of a special consultant, an international firm with expertise in unfinished energy projects. This consultant will assess the quality of existing materials, redesign underperforming parts of the project, and prepare documents for new bids.
FSRU PROMETHEAS Situation:
The PROMETHEAS remains docked in Shanghai, awaiting resolution of issues that have stalled its delivery. Government sources suggest a resolution with the Chinese is imminent, potentially by mid-December. However, the ship will first need to travel to an LNG terminal—not to Cyprus—for certification. ETYFA is searching for available slots in terminals in Greece and the Arabian Gulf for these inspections, but scheduling challenges may cause delays.
Financial Uncertainty with the Chinese:
While optimism remains for a swift resolution, details about the agreement with the Chinese remain unclear. Negotiations have likely involved financial compromises from Cyprus to avoid further delays. The situation remains complicated by ongoing arbitration proceedings in London, where the Chinese consortium is claiming an additional €200 million. This case is expected to conclude by late 2026. Meanwhile, Cyprus holds €70 million in guarantees related to the Vasilikos project, which remain unaffected by the ship's release.
In summary, completing the Vasilikos PV terminal is crucial for Cyprus’s energy strategy, three Greek companies are interested in finishing the onshore infrastructure, the PROMETHEAS FSRU is set to leave Shanghai soon for certification, government negotiations with the Chinese have likely involved financial concessions, and delays in ship certification could push the project’s completion into early 2026.
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