The long search for a contractor to complete the construction of a liquefied natural gas (LNG) regasification terminal at Vasilikos has come to an end.
The state-owned company ETYFA spent a year negotiating with ten candidates, including major international organisations with extensive experience in implementing large-scale energy projects.
The winner of the tender was recently announced. It was Technip Energies' Cypriot subsidiary, T.EN PMS Services Ltd, with whom ETYFA signed the contract. Technip Energies is one of the largest companies in the field of engineering, construction and management of energy projects. An international group with more than 70 years of experience, it has operations in 34 countries and employs more than 17,000 people. Its portfolio includes more than 450 major projects, including terminals, plants and infrastructure facilities around the world.
The choice of such a partner could be a turning point for the long-running project, which has been repeatedly delayed by mismanagement, contractor defections and allegations of misuse of funds, including by the Chinese consortium CPP.
A meeting between ETYFA and Technip Energies is due to take place in the near future to develop an updated work plan. It is expected that the contractor will be able to start the active phase of the project within a week.
The first phase will include:
- Assessing the current state of the site at Vasilikos;
- Prepare documents for new tenders, especially for the coastal infrastructure;
- Determine the extent of unfinished work both on land and at sea;
- Develop a realistic budget and schedule for the final delivery of the terminal.
At present, one of the key technical issues remains unresolved: the completion of the construction of the marine berth to which the Prometheus floating terminal will be moored.
The vessel is awaiting the installation and certification of equipment that is still being manufactured in Malaysia. ETYFA has received legal advice from London-based consultants that it has the right to continue working with the VPSM consortium (which includes Multimarine Services and the Spanopoulos Group), previously engaged by China's CPP as a subcontractor for the construction of the jetty, without a new tender. Negotiations with VPSM have been difficult, but unofficial information suggests that the agreement is now in the final stages.
The situation is exacerbated by the fact that much of the equipment has been underwater for a long time. Technical inspections are already planned on site to determine whether it will be possible to complete the work immediately or whether repair and maintenance of the damaged structures will be required.
Although the project is once again facing uncertainty, the selection of Technip Energies gives hope that the construction of the Vasilikos terminal will finally be completed. This is a crucial step towards ensuring a clean, sustainable and competitive energy sector in Cyprus, reducing dependence on fuel oil and integrating the country into the pan-European energy infrastructure.
