The floating storage and regasification unit (Fsru), an integral component of the LNG project, is expected to remain in Malaysia for about two to three months, Energy Minister George Papanastasiou said on Tuesday.
Answering reporters’ questions, the minister said the Fsru vessel is still moored at the Strait of Malacca, Malaysia, where it’s undergoing technical inspections.
“So right now checks are being carried out and at the same time we’re looking for those parts that are required so that the vessel can be considered fit as a floating regasification unit,” Papanastasiou explained.
The next step would be for the ship to dock at an LNG terminal so that it can be certified as an Fsru.
“Certification means that the ship has been checked that it can produce specific quantities of [natural] gas…it has to be checked at a terminal to verify this.”
The natural gas infrastructure company – Etyfa, the owners of the ship – is meantime preparing tenders to select the LNG terminal where the vessel would undergo certification.
The minister estimated the vessel would stay in Malaysia for about two to three months. This is because the Fsru requires two “important parts” to be installed on it. These parts – necessary for regasification processes – normally have a long delivery time.
Regarding the cost of this equipment, Papanastasiou demurred, saying only that the price tag is lower than initially anticipated.
Asked about the ship’s next destination once it leaves Malaysia, the minister said the options are limited. Previously, he had hinted at a location in the Persian Gulf or Greece.
“Wherever it can be certified, in a country in our region, would be acceptable. What matters is that this be the result of a tender, so that we can say that we followed the correct procedure.”
Another aspect is that the ship’s next destination must get the green light from both the European Commission and from lenders – the European Investment Bank and the European Bank for Reconstruction and Development.
On whether EU financing for the LNG project has been ‘lost’, the minister gave assurances this was not the case. The government is in contact with the European Commission on the matter.
The European Commission had approved a €101 million grant for Cyprus’ LNG terminal project.
The entire project consists of the Fsru vessel, the onshore facility at Vasiliko, and the jetty.
Works at Vasiliko itself are half-finished, with an estimated time of completion the end of 2025. In the interim, the ship must dock elsewhere.
Back in July 2024, the Chinese-led contractor terminated the LNG contract with Cyprus.
That left Cypriot authorities scrambling to find new subcontractors to finish incomplete works at the onshore facilities and the jetty, while also trying to get the Chinese to release the Fsru from Shanghai. The vessel was finally released in mid-December.
Regarding the other major energy issue – the Great Sea Interconnector – Papanastasiou said they still await a response from Greece’s energy ministry.
In December, Papanastasiou addressed a letter to his Greek counterpart, relaying various concerns about the the status of shareholders in the holding company.
These concerns had been highlighted by consultants hired by the Cypriot government.
The Cypriot state is mulling becoming an equity investor in the holding company.
Papanastasiou reiterated that, regardless of the government’s decision to invest or not, the interconnector project would go ahead.
The Great Sea Interconnector is a proposed subsea electricity cable linking Cyprus to Crete.
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