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Cyprus is gearing up to revive its biggest energy project, the long-delayed natural gas terminal at Vasilikos, after a rocky period following the exit of a Chinese consortium that had taken the lead. The project's revival marks a major step toward finally importing natural gas, which the government hopes will bring down electricity costs for consumers.
According to Kathimerini's Apostolos Tomaras, almost six months after the sudden withdrawal of the Chinese-led CPP-METRON Consortium, the government, through the Natural Gas Infrastructure Company (ETYFA), is preparing to sign a crucial contract with a European consultancy firm. This firm will oversee the remaining work on the terminal, pushing the stalled project forward with fresh momentum.
Although officials haven’t yet revealed the name of the consultancy or the financial terms, sources confirm that all technical agreements are in place. The signing of this agreement is expected to happen very soon—kickstarting the process of reviewing tender documents and selecting a new contractor to complete the infrastructure.
...the terminal will allow Cyprus to import natural gas, reducing dependency on more expensive, dirtier fuels and possibly lowering electricity bills for households and businesses.
The goal is completion by 2026, but sooner, if possible
If everything goes according to plan, the terminal could be operational by the end of 2025, though April 2026 is the latest fallback deadline. That timeline hinges on everything running smoothly, including the complex second phase of the project: construction of the pier. This part is particularly sensitive, and officials are already wary of potential complications—especially with whispers of interference from interests tied to China, though not directly from the original consortium.
Enter Prometheus: The floating gas unit
A major piece of this puzzle is already en route—literally. A floating liquefied natural gas unit called Prometheus is currently docked in the Strait of Malacca off Malaysia, undergoing vital inspections. This vessel will eventually anchor at the Vasilikos terminal and act as the main regasification plant. But before it can sail to Cyprus, it needs two key components installed and certified—parts that are on their way and expected to arrive within the next three months.
The Republic of Cyprus has already paid millions to cover the management, insurance, and transport of Prometheus from Shanghai to Cyprus. These include:
- €1.45 million to Wilhelmsen Ship Management (Nov 2024 – Jan 2025)
- €298,000 to Wilhelmsen Insurance Services (Aug 2024 – May 2025)
- €1.03 million to China Petroleum Pipeline Engineering and Island Oil for the vessel’s transportation
Why it matters
This isn’t just a construction project; it’s a turning point. Once complete, the terminal will allow Cyprus to import natural gas, reducing dependency on more expensive, dirtier fuels and possibly lowering electricity bills for households and businesses. It also positions Cyprus as an energy player in the region, with the potential for long-term geopolitical and economic benefits.
The next few months will be crucial. If the consultancy deal goes through smoothly and construction resumes without major hitches, Cyprus could finally be on the brink of energy transformation—fueled by a floating giant and a long-awaited shift to cleaner, cheaper power.
