After many months of stagnation, movement is finally recorded on the Vasilikos LNG project, with the government moving toward an open process to find a new contractor responsible for completing the jetty and associated land‑based facilities. Regarding the timeframe, sources familiar with the discussions told Politis that the project could be delivered within 24 to 30 months, meaning sometime in 2028, either early or late in the year. However, they added that a shorter delivery time is possible if the selected contractor has the capacity to move at a faster pace.
According to the same information, Natural Gas Infrastructure Company (ETYFA) will run the preselection procedure, during which interested companies will be invited to submit expressions of interest. This phase will be followed by negotiations with those who qualify.
The preselection process requires candidate companies to submit documentation, including certifications, experience records, and financial statements, to be shortlisted as capable bidders.
In parallel, staffing at Natural Gas Public Company (DEFA) will be strengthened so that it can effectively supervise the project. Weaknesses in monitoring the construction work carried out by the Chinese consortium are considered one of the factors behind the project’s failure to progress.
Next steps
“We have decided to launch a preselection tender for contractors. We are moving full speed ahead with tenders for the completion of the project,” the President of DEFA, Giorgos Assikalis, told the House Energy Committee on Tuesday.
DEFA also decided to submit a request to the Central Changes and Claims Committee for the release of funds needed to conduct the required risk studies, which are a prerequisite for safely continuing construction and for obtaining infrastructure permits.
In addition, a six‑month extension has been granted to Technip, the company acting as project coordinator, to complete the overall design.
The project is considered essential for reducing electricity generation costs and ensuring the security of electricity supply.
Former DEFA Director‑General Marios Menelaou told the committee that “DEFA and ETYFA relied on external technical consultants” and that “the cost of not bringing natural gas amounts to €350 million per year.”
The floating unit
As for the Prometheus floating storage and regasification unit (FSRU), it remains in Malaysia. DEFA’s management said scenarios are being examined for its use within the limitations imposed by the European Union.
“We reduced the staffing by half. Monthly costs will be €190,000 lower. The vessel is still in Malaysia, and its future deployment is under examination. There was interest from companies seeking to use it, but the EU does not permit us to proceed,” Assikalis said regarding the Prometheus vessel.
Concerns persist
Despite moves to accelerate progress, the Cyprus Energy Regulatory Authority (CERA) maintains low expectations regarding when natural gas will reach the electricity production sector. Its president, Polyvios Lemonaris, said ongoing energy adequacy studies incorporate, as a “worst-case scenario”, the assumption that natural gas will not arrive before 2030 – an outcome that translates into additional annual costs of hundreds of millions of euros for consumers.
During the parliamentary discussion, MPs stressed that no one can say with certainty when the project will be completed, what the final cost will be, or to what extent existing problems will affect future electricity charges. At the same time, proposals for alternative solutions resurfaced, including pipeline construction directly from the Aphrodite gas field, either as a temporary or supplementary option for supplying Cyprus with natural gas.
The former DEFA Director‑General noted that he has in his possession a temporary solution implemented in Colombia, which could also be applied in Cyprus, and questioned “why the construction of pipelines from the Aphrodite field should not be examined.”