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Just when it seemed Cyprus’ troubled natural gas terminal at Vasilikos might finally be sailing smoothly, another snag has thrown the project off course, adding it to a growing list of delayed or unfinished infrastructure plans, from the Paphos-Polis highway to the Great Sea Interconnector.
According to Kathimerini's Apostolos Tomaras, Energy Minister George Papanastasiou told lawmakers this week that ETYFA, the state-owned company overseeing the Vasilikos site, doesn’t yet know if the half-built terminal can even be completed. The admission sparked heavy criticism in Parliament, with opposition parties accusing the government of staging communication tricks while the island once again struggles to meet its electricity needs.
Concerns go beyond delays. Both Papanastasiou and veteran politician Averof Neophytou pointed to potential safety issues at the terminal, after reports that the Chinese contractor awarded the project may have used substandard materials. That problem is now under investigation by the European Public Prosecutor’s Office, a probe that could also jeopardize the EU funding tied to the terminal.
To get clarity, ETYFA has hired French firm Technip to conduct a full review of the work already done. The study, due soon, will determine if the structures meet safety rules. If the results show serious flaws, the government may have to rip up its current plan, overhaul its monopoly system for importing gas, and decide what to do with the half-finished terminal.
That monopoly, established back in 2008 and entrusted to state gas company DEFA, has so far failed to deliver. Nearly 18 years on, natural gas has yet to arrive in Cyprus, even though the Electricity Authority and private investors spent millions preparing their infrastructure to run on it. With the LNG plan in doubt, the Energy Ministry is now exploring whether to let third-party suppliers import gas directly, much like the EAC currently does with fuel oil.
The controversy sparked political crossfire in Parliament. AKEL demanded Papanastasiou take responsibility, while Neophytou criticized ETYFA for taking over the project after the Chinese pulled out. DIKO leader Nikolas Papadopoulos, however, backed the minister’s claim that the problems were inherited, urging all sides to be self-critical about the Republic’s failed energy strategy. Lawmakers also pressed Papanastasiou to explain why the Chinese contract was terminated and why new negotiations collapsed, questions he sidestepped, citing the EU prosecutor’s probe.
For Cyprus, the Vasilikos LNG project was supposed to be the cornerstone of a cleaner and more affordable energy future. Instead, it risks becoming yet another national embarrassment, a half-finished dream sitting alongside other projects that never made it past the drawing board.
The fate of the terminal, and perhaps the country’s energy policy itself, now hinges on the French study expected in the coming weeks.
