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The European Commission is assessing the potential impacts on project funding following the withdrawal of a Chinese consortium from the construction of the LNG terminal in Vasilikos, a spokesperson for the European Commission confirmed.
In a written response, Commission spokesperson Adalbert Jahnz stated that while the Commission typically does not comment on business decisions, it will review how the CPP-Metron consortium's withdrawal affects the completion of the remaining project phases.
"The Commission is committed to ending the energy isolation of Cyprus and has supported this project politically and financially," Jahnz noted.
The withdrawal adds another layer of complexity to Cyprus's efforts to transition away from fuel oil, a challenge highlighted by the recent hurdles faced by the EuroAsia Interconnector project. This project, now renamed the Great Sea Interconnector, aims to connect Cyprus, Greece, and Israel electrically but has yet to secure firm participation from the Cypriot government. The European Union has funded both the LNG terminal and the interconnector through the Connecting Europe Facility, with additional support from the Recovery and Resilience Facility.
Cyprus remains unique within the EU for its reliance on fuel oil for electricity generation. According to Eurostat, 19% of Cyprus's energy came from renewable sources in 2022, compared to the EU average of 22%. However, the International Energy Agency reported that in 2021, 84.9% of Cyprus's electricity was generated from oil, with solar and wind contributing only 9.1% and 4.8%, respectively.
The European Commission has repeatedly emphasized the importance of connectivity and green energy, including renewable sources and green hydrogen, as the future for Cyprus’s energy sector. Energy Commissioner Kadri Simson highlighted the "enormous potential" for renewable energy in Cyprus, advocating for its development as a means to reduce energy costs for consumers and support green hydrogen production.
[Summary of George Kakouris' original story in Greek published in Kathimerini's Cyprus edition]
