Newsroom
According to Apostolos Tomaras in today's Kathimerini, four months after the Chinese consortium pulled out of the construction of the Vasilikos terminal, efforts to fill the gap are still getting started. ETYFA, a part of DEFA that owns the project, is looking for consultants with experience in unfinished energy projects. They want these experts to help complete the remaining 40% of the terminal's onshore infrastructure. Out of ten international companies that showed interest, only three are still in the running after a review.
A key focus for the Cypriot government is the delivery of the "Prometheus," a floating storage and regasification unit (FSRU). Without this ship, even if the remaining construction is finished, the terminal won't be able to operate or import liquefied natural gas (LNG). Currently moored in Shanghai, the ship has been converted into an FSRU, but it needs two certifications to sail: one for carrying LNG and another for turning LNG back into gas. The Chinese consortium is reportedly blocking the ship's departure, demanding an extra €30 million from ETYFA, which has already spent €190 million on the conversion.
The Cypriot government is trying to negotiate a resolution to avoid a lengthy legal battle in London, which could take years to resolve. Energy Minister George Papanastasiou mentioned that the Chinese are using the Prometheus to negotiate on two important parts of the project: the pier at Vasilikos and the onshore infrastructure.
Three potential scenarios are being discussed regarding the natural gas project:
-
Pessimistic Scenario: If negotiations with the Chinese consortium regarding the 'Prometheus' ship fail, ETYFA may need to rent a new floating unit. This would mean starting a new project from scratch, pushing the expected operational date for the terminal and the introduction of natural gas to after 2026.
-
Realistic Scenario: If the situation improves and the 'Prometheus' ship becomes operational, the Vasilikos terminal could be ready for use by 2025. The government would then focus on preparing for the generation of power through photovoltaic (PV) energy.
-
Total Failure Scenario: If all current efforts fail, the Ministry of Energy may turn to the private sector for new proposals to import natural gas. This would represent a significant shift in strategy and could lead to a completely new approach to introducing natural gas in Cyprus.
The financial dispute between ETYFA and the Chinese consortium adds another layer of complexity. The consortium is seeking an additional €200 million due to their withdrawal, and ETYFA is waiting to hear whether €69 million in guarantees will be paid back or tied up in legal proceedings. The outcome of these negotiations is crucial for the future of the Vasilikos terminal and Cyprus's energy strategy.
To read more of Apostolos Tomaras' story and gain full access to in-depth reports (in Greek), subscribe now to Kathimerini's print edition and stay informed with comprehensive coverage on this and more!
