Three years after the groundbreaking for the liquefied natural gas terminal, a project worth $289 million in euros has been initiated.
However, the work remains incomplete, causing a delay in the implementation of a medium-term solution for transporting and utilizing liquefied natural gas. This delay is significant as it affects consumers seeking an alternative to the rising oil prices.
The most recent update indicates that the terminal's completion stands at 77%. The land terminal is projected to finish construction by the third week of July in 2024, as per a new schedule submitted by the contractor.
On the other hand, the floating gas regasification and storage facility in Shanghai is progressing rapidly, with an estimated completion rate of 98%. It is currently undergoing gas trials and addressing issues that arose last August.
By October 25, the final checks on the ship are expected to be completed.
A report by lngprime notes that the Cyprus floating gas regasification and storage facility is in its final testing phase in China. However, due to the time gap between the delivery of the floating unit and the completion of the land terminal in Vasilikos, it may not be operational for at least seven months.
The government is considering renting the floating unit to other European Union member states during this interim period. The marine facilities at Vasilikos are also under construction, with 259 support stakes in place and a total of 740 expected.
The floating unit is expected to be ready by the end of 2023, with an airworthiness certificate needed for navigation.
The terminal's construction is scheduled for completion in July 2024, which includes the installation of piles, a pier, headbands, a platform, and various electromechanical systems. This project aims to support electricity generation by connecting natural gas to the country's energy grid.
Furthermore, the process of selecting companies to supply natural gas to the Cyprus market in the medium and long term has been finalized. The project is currently at 77% completion overall, with the floating unit at 98%.
However, new delays of 2-3 months are possible, making it unlikely that liquefied natural gas can be utilized before the end of 2024.
The delays can be attributed to the impact of the COVID-19 pandemic on the supply chain and variations in procedures and regulations within the Chinese consortium managing the project. Nevertheless, internal issues at Defa, the Cyprus Natural Gas Public Company, seem to have been resolved.
In parallel, a network must be established to connect the LNG Terminal with licensed power generators in the vicinity. This network is vital for leveraging the terminal's capabilities.
The completion of this network is anticipated by the end of 2024, pending the decision of the Tender Review Authority and the support of technical services.
