The new liquefied natural gas (LNG) terminal at Vasiliko and the floating storage and regasification unit Prometheus will be fully operational by the end of 2025.
This was announced by the Cypriot Minister of Energy, Yiorgos Papanastasiou, on Tuesday 7th January.
According to him, the plant, which was shipped from Shanghai in December, has undergone technical checks in Singapore and is currently undergoing further tests in the Strait of Malacca. The minister mentioned that the launch of the natural gas project itself may be delayed until 2026 to allow the Electricity Authority of Cyprus (EAC) and private producers to fully test the regasified generators.
It is worth noting that Cyprus is currently actively working on the Great Sea Interconnector project, which will connect the island's electricity grid to Greece and thus to the European energy system. Negotiations are focusing on Cyprus's role in managing this infrastructure, which will provide a solid basis for further integration with Europe.
At the same time, negotiations are underway with Egypt on a project to develop the Kronos gas field. The gas produced will be directed to the Egyptian market, while a significant part will be exported to European countries, strengthening Cyprus' position as an energy supplier. Papanastasiou stressed the importance of strategic planning and regional partnership in this matter. According to him, the implementation of the current projects will not only strengthen Cyprus' energy independence, but also create new opportunities for economic growth and international cooperation.
The transition to full operation of the LNG infrastructure and the further development of energy relations with other states open up the prospect of Cyprus becoming a major player in the global energy market," the Minister said.
As a reminder, the agreement for the construction of the Vasiliko LNG terminal between the Cyprus government and the international consortium CPP-Metron (CMC) was signed in December 2019. The groundbreaking ceremony will take place on 9 July 2020 with the participation of former Cypriot President Nikos Anastasiades.
The project includes a floating storage and regasification unit, a berth for mooring the floating unit, isothermal gas storage tanks, an evaporation plant and an onshore pipeline. The idea was to import natural gas to Cyprus in liquefied form, convert it to gaseous form (regasified) in LNG and then use it to run power plants.
The terminal was originally due to be completed by the end of 2021, but this was pushed back to the end of 2022 and the beginning of 2023. In the end, no one could give an exact completion date for the facility. And in July 2024, the contractor announced the suspension of the project. According to media reports, tensions arose between the state-owned Natural Gas Infrastructure Company (ETYFA) and the Chinese consortium CPP-Metron (CMC) over the lack of clear deadlines for the construction of the LNG terminal and problems with the shipment of a floating regasification unit from Shanghai to Cyprus.
Negotiations continued until 18 July, when the contractor announced its withdrawal from the project. The company accused the Cypriot side of non-payment of contractual fees and criticised the inexperience of the Cypriot side and the consultants hired by it. After lengthy negotiations, the Chinese authorities agreed to hand over the Prometheus to Cyprus. And the Cypriot government declared its intention to see the project through to its logical conclusion.