Shanghai (Business Emerge), July 25: The Natural Gas Infrastructure Company of Cyprus (ETYFA), a joint venture between CYGAS (Natural Gas Public Company, 70%) and EAC (30%), had signed an EPCOM (Engineer, Procure, Construct, Operate and Maintain) contract with the CPP-Metrom Consortium (CMC) in December 2019, comprising China Petroleum Pipeline Engineering (CPP), Metron Energy Applications, Hudong-Zhonghua Shipbuilding, and Wilhelmsen Ship Management. The contract aimed to complete the 2 Mt/year LNG import terminal in Vasilikos, Cyprus, within 24 months. Despite four revised delivery schedules—September 2022, July 2023, October 2023, and July 2024—construction, which began in July 2020, faced setbacks.
The project, initially funded by the European Investment Bank (EIB) with a €150m loan, the European Union (EU) with a €101m grant via the Connecting Europe Facility, the European Bank for Reconstruction and Development (EBRD) with an €80m loan, and the Electric Authority of Cyprus (EAC) with a €43m equity contribution, was anticipated to be a significant development for Cyprus. The regasified LNG was intended to power EAC’s 868 MW Vasilikos power plant, which provides 37% of Cyprus’s energy capacity. Currently, Cyprus is the only EU country predominantly relying on oil for power, with 83% of its generation mix coming from oil in 2022 compared to the EU’s average of 2%.
However, the CPP-Metron Consortium (CMC) has now withdrawn from the project, citing non-payment for completed work by the Cypriot government in 2024. The halted project included the construction of a pile-supported jetty and access trestle to facilitate the berthing, loading, and unloading of a Floating Storage and Regasification Unit (FSRU), along with necessary onshore works such as pipelines, meters, and a buffer zone.
As a result of this withdrawal, the Cypriot government is expected to appoint new subcontractors to finalize the onshore terminal and jetty within an estimated 10 months. This change is crucial to ensuring the completion of the project, which is vital for Cyprus’s energy infrastructure and transition away from oil dependence.