Cyprus advances energy infrastructure projects at Vasilikos and Great Sea Interconnector

Cyprus is currently navigating critical developments in its energy strategy, focusing on the completion of the long-delayed natural gas terminal at Vasilikos and the progress of the Great Sea Interconnector (GSI). The government is currently evaluating expressions of interest for the Vasilikos terminal, a project with an estimated completion cost of €180 million. Energy Minister Michalis Damianos indicated that after a new contractor is selected, the construction, which includes land facilities and the jetty, is expected to take approximately 18 months. The tender follows the exit of a previous Chinese consortium, leaving the project currently tied up in arbitration and significant delays.

Meanwhile, the Electricity Authority of Cyprus (EAC) has initiated studies to assess the technical and economic risks of the GSI project to ensure grid stability. Geopolitical tensions remain a concern, particularly regarding maritime surveys for the interconnection. While some Greek media outlets suggest October 26 as a potential start date for these surveys, the project faces challenges regarding funding, with Nicosia conditioning the release of €25 million on the resumption of work. Additionally, debate has emerged regarding the cryogenic specifications of the Vasilikos jetty, with critics questioning if such costly technical requirements are necessary at this stage.