Newsroom
Cyprus is taking steps to recover €67 million in European Union funding for the long-delayed liquefied natural gas (LNG) terminal in Vasilikos, Energy Minister Michalis Damianou told lawmakers Tuesday.
The grant, originally provided by the EU to support the terminal, has been partly offset against other payments to the Republic of Cyprus, and some funds have already been returned in cash, Damianou said during a parliamentary committee session on energy projects.
“The government’s priority is to complete the project from where it was halted,” the minister said. He confirmed that efforts are underway to find a new contractor through the tender process to bring the project to completion.
Damianou also addressed technical questions about a French study conducted by Technip, describing it as a complex gap analysis currently being reviewed by the Cypriot LNG operator ETYFA. Lawmakers requested the study be submitted to parliament, with Damianou saying it will be shared if legally possible.
Looking beyond European partners, the minister said Cyprus is in preliminary talks with companies from the United Arab Emirates as a potential alternative to finish construction. However, he stressed that these discussions are at an early stage, and no political decisions have yet been made regarding intergovernmental agreements.
When asked about timelines, Damianou said even Technip engineers could not provide definitive completion dates. “We must finish the project, but I cannot provide a schedule today. When we can, we will,” he said.
The €67 million in EU funding came through the CINEA financing mechanism. Damianou confirmed recovery procedures are ongoing, with a combination of offsets and cash repayments already in motion to reclaim the funds.
