LNG terminal construction in Vasiliko to resume (updated)

The CPP-Metron Consortium Ltd (CMC) is set to resume construction of an LNG terminal in Vasiliko over the weekend, it emerged on Friday.

During a meeting between CPP representatives from China and Energy Minister George Papanastasiou, it was disclosed that work would restart on Saturday to complete the terminal.

The differences regarding the execution of the project were not discussed at Friday’s meeting; instead, the focus was on the relationship between the two sides.

According to daily Politis, the meeting was described as ‘productive’ and led to the resumption of work.

The consortium expressed its intention to bring in personnel from China, and at a subsequent meeting will discuss the schedule for completing the work.

The Cypriot side stated that it would provide the necessary facilities, such as issuing visas, for the foreign workforce.

In a press release later, the General Manager of CPP from China is grateful and thankful that the minister was prepared to see him given that all requests for meetings with Etyfa management have been either ignored or rebuffed.

The statement said: “CMC is greatly impressed with the minister’s positive outlook and energetic approach to complete this project with CMC and its partners.”

CMC and the minister agreed during the meeting that works will resume tomorrow morning of 16 March 2024.

“CMC would like to assure the Republic of Cyprus that CMC will mobilise all resources to conclude this project for the benefit of all citizens of Cyprus,” the statement said.

Last week, Papanastasiou stated that the government had not ruled out terminating the deal, stressing that the LNG project would either be completed with the current contractor or ‘alternative solutions’ would be sought.

The ongoing dispute escalated after the consortium halted works in late January, also severing communication with Etyfa, the state-run natural gas infrastructure company that owns the project.

It also moved to claim €200 million from Cyprus in arbitration proceedings at a London court.