Nicosia: Cyprus has initiated procedures to recover £67 million in European Union funding associated with the postponed liquefied natural gas (LNG) terminal project in Vasiliko, announced Energy Minister Michalis Damianos. The move comes as the government seeks to restart and complete this critical infrastructure project. According to Cyprus News Agency, Damianos addressed the Parliamentary Energy Committee, revealing that the recovery process for the grant, provided by the European Commission through the CINEA funding mechanism, is already underway. Some of the funds have been offset against other EU funds due to Cyprus, with a portion repaid in cash. The Minister emphasized the government's commitment to finishing the LNG terminal and is actively seeking a new contractor through a tender process. Discussions with a company from the United Arab Emirates are ongoing, but no timeline for project completion has been set. A Finance Ministry representative confirmed the repayment of the £67 million to the EU, h ighlighting an agreement with the European Commission for Cyprus to receive reduced funding from other reform-linked programmes. These deductions began in 2025. The official clarified that no development projects were canceled, but funding for reform projects expected to total £100 million might be reduced to about £33 million. The Audit Office representative informed the Committee of requests for the government's official policy position on the project's restart, noting previous responses from current and former energy ministers were unsatisfactory. A new letter was sent in January seeking clarification on the Ministry's strategic priorities and actions for the LNG terminal project. The supervising engineer assured lawmakers that all materials for the LNG terminal met specifications and necessary certificates had been handed to ETYFA. Pending certificates are linked to payments by the contractor to suppliers, expected upon project completion. Engineers have re-examined documentation, construction materials , and equipment stored at supplier facilities. George Petrou, Chairman of the Electricity Authority of Cyprus, stated that engineers have reviewed the gap analysis and are nearing final decisions. The next step involves launching a tender process.