Cyprus could face a serious electricity adequacy problem by 2030 if natural gas is not introduced into the energy mix, Energy, Commerce and Industry Minister Michalis Damianos told parliament's Energy Committee on Tuesday.
Addressing committee members, Damianos stressed that completing the Vasiliko liquefied natural gas (LNG) infrastructure project is essential and remains the government's only realistic path forward.
“Without natural gas, we will have a serious issue with electricity adequacy in 2030,” he said, adding that the Vasiliko project “must be completed before 2030” and expressing confidence that it would be.
Vasiliko project a “one-way road”
Damianos said alternative solutions would likely take as long as, or even longer than, completing the existing project because of public procurement requirements.
He noted that any new project would require the preparation of tender documents, submission and evaluation of bids, possible legal challenges, contract awards and eventual construction.
“Our decision is for the project to continue,” he said. “We need the project because we need natural gas.”
Project only partially completed
According to Damianos, a study prepared by engineering company Technip and received by the government at the end of 2025 concluded that the Vasiliko project remains unfinished.
While he declined to specify the exact level of completion, describing the matter as highly technical, he reiterated that completing the existing infrastructure is the only practical solution.
“Whether it is 40 per cent or 60 per cent complete is very technical, but the only real solution is to finish this project,” he said.
Tender process advancing
The minister said tender specifications are expected to be finalised during July.
He also noted that a new board of directors has recently been appointed at the Natural Gas Public Company (DEFA), enabling ETYFA, which comprises representatives from DEFA and the Electricity Authority of Cyprus (EAC), to proceed with finalising the tender terms.
The government's goal, he said, is to complete the tender process and award a contract by the end of 2026 or during the first quarter of 2027.
Damianos expressed hope that the project would not face further legal challenges, allowing construction to proceed without additional delays.
Source: CNA
