Nicosia: The natural gas liquefaction terminal project in Vasilikos ‘is feasible, should be completed and will be completed,’ Cyprus’ Minister of Energy, Commerce and Industry, George Papanastasiou, stated during a discussion at the House Energy Committee.
According to Cyprus News Agency, the Minister emphasized that the consultant for the Natural Gas Infrastructure Company (ETYFA) strongly advises against calling for tenders at this stage, describing it as impossible and operationally dangerous. Papanastasiou responded to MPs’ concerns about delays by explaining that options are limited due to the project’s incomplete status.
The contract for the project was signed in 2019 with an expected delivery in 2022, which was not met. Efforts have been made by both previous and current governments to realign the project. Papanastasiou mentioned that the LNG tanker ‘ETYFA-Prometheas’ is expected to be ready next month after final checks. This tanker is a crucial asset, and once operational, the remaining components must be completed to facilitate docking, gasification, and subsequent natural gas utilization for power generation.
The Minister highlighted the need for a gap study to identify any deviations in construction or materials. This study, to be completed within two months, will inform the next steps. Should significant issues be found, a Front-End Engineering Design (FEED) would be necessary for a mini redesign to guide the project’s progression.
In a positive scenario without major issues, Papanastasiou indicated that tenders and their terms, prepared by ETYFA and the consultant, should be announced promptly to attract construction companies interested in completing the project. He stressed that the quickest way for Cyprus to access natural gas is through the terminal’s completion.
Papanastasiou also acknowledged the risk of construction companies not showing interest due to the project’s challenges. He expressed confidence in the current procedure and underscored the importance of completing and safely operating the project.