The government is awaiting legal advice after the European Commission demanded the return of €67 million it had paid for the Vasiliko liquefied natural gas (LNG) terminal that was never completed, Energy Minister George Papanastasiou said on Friday.

The Law Office of the Republic has sought advice from British experts and then “we will decided what to do”, the minister explained.

Asked if Cyprus could appeal the demand, Papanastasiou said “all possibilities are open”, pending the legal advice.

Cyprus has been given until November to repay millions of euros which had been paid by the European Commission in grants for the construction of the liquefied natural gas terminal at Vasiliko.

Papanastasiou told the Cyprus News Agency that the issue appears to have arisen after a complaint that the tender had been awarded to a Chinese consortium.

The Commissions climate, infrastructure and environment executive agency (Cinea), which paid out the sum, was informed of the issue by the European court of auditors, “which I assume based its case on information received from Cyprus’ Audit Service”, the minister added.

In a report, the court of auditors deemed that the project should not have been awarded to the consortium and explained why.

“When he had received the first letter last spring, we answered with a detailed and lengthy letter in writing, explaining our position,” Papanastasiou said.

However, the energy ministry’s permanent secretary received a reply saying that the letter did not say anything new and insisting that the decision to demand the return o the money was final.

The funds received from the EU so far reach €73 million, from a total budgeted grant of €101 million.

The rest of the money, which the Commission is not demanding be paid back, “I assume concerns studies that had been carried out before the project was awarded”, Papanastasiou said.