The liquefied natural gas (LNG) terminal in Cyprus is back on track and should be finished by the end of the year, China’s ambassador to Cyprus said on Thursday.

“The work at Vasiliko is somewhat complex. Now works have restarted normally. We see many opportunities, and the prospects are bright,” Liu Yantao said at a gathering in Nicosia organised by the Chinese embassy.

Speaking through an interpreter, the ambassador was commenting on the dispute between the CPP-Metron Consortium (CPC) and the Cypriot side, which had led to the halting of construction works at the land-based facility in Vasiliko for over a month.

Work has since resumed following a meeting between a senior official of CPP (China Petroleum Pipeline Engineering Co Ltd) and the Cypriot energy minister.

CPP is a state-owned company in China.

The Chinese ambassador went on to say that the floating, storage and regasification unit (Fsru) is currently in Shanghai and “more than 99 per cent complete”. The vessel should be formally delivered to the Cypriot side by April or May.

Regarding the infrastructures on land at Vasiliko, Liu said works there are 50 per cent complete.

Meantime a number of Chinese workers are expected to travel to Cyprus “soon” to assist in these works.

“Provided that the parties can really work together, I believe that the main component of the project at Vasiliko can be completed by the end of this year or beginning of next year,” noted Liu.

He said successful completion of the project will benefit the Cypriot people in bringing down the cost of generating electricity, but would also be a “win-win” for the two nations underlining their friendship.

The CMC consortium had ceased all work at Vasiliko at the end of January and filed a claim for €200 million against Cyprus at the London court of arbitration, claiming the incurring of higher costs and the alleged failure of the project manager, Etyfa (the natural gas infrastructure company), to carry out its contractual obligations.