Status of the Vasiliko LNG terminal project in Cyprus

DEFA and ETYFA are preparing to launch a tender to select a new contractor for the completion of the unfinished LNG terminal at Vasiliko, following delays related to clarifications from the General Accounting Office. The proposed roadmap aims to finalize the pre-selection process by September 2024, award the contract by the end of 2026, and commence work in 2027. Experts and energy officials warn that failing to complete the facility could result in electricity shortages from 2029-2030 onwards due to the planned retirement of aging EAC power units. The project, which began in 2019, faces significant legal and financial complications, including a dispute with the former contractor currently before a London arbitration court. Critics characterize the project as a failure, citing high costs, the idle state of the 'Prometheus' vessel currently in Malaysia, and ongoing investigations by the European Public Prosecutor's Office. While officials insist there is no 'Plan B' for energy security, the project's total cost and economic viability remain subjects of intense public and political debate.