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25 July, 2024
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Cyprus energy project stalemate continues amid diplomatic efforts

Nicosia seeks Chinese intervention to salvage consortium relations, sets March 31 deadline


The month-long stalemate in the Republic of Cyprus' largest energy project remains unchanged, with Nicosia striving to avoid terminating the contract with the project consortium. Despite inactive communication channels, the government seeks to rekindle relations through the Chinese embassy in Nicosia.

Energy Minister George Papanastasiou has reportedly met twice with the Chinese ambassador, requesting direct consultations with a senior executive from the parent company of the Chinese consortium.

The Cyprus government has set a deadline of March 31, and if efforts to resolve the impasse fail, they may proceed with plan B, which involves terminating the contract. However, this could lead to complications, including legal issues in Greek courts and concerns about completed but unpaid construction work.

The FSRU vessel, owned by Cyprus and awaiting certification, poses a potential source of confusion and delays. The consortium has received €245 million out of the €289 million initial budget, with reimbursement discussions pending if the contract is terminated. Construction progress in Vasilikos is estimated at 45%, possibly lower without accounting for purchased but uninstalled terminal equipment.

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Cyprus  |  energy

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