LNG terminal ‘will be ready’ summer 2023

Energy Minister Natasa Pilides is confident the EUR 300 mln Vasiliko LNG import terminal will be completed in the summer of 2023, despite contractors threatening to pull out over extra costs. In comments to state radio CyBC on Tuesday, Pilides said the implementation of the project is proceeding within the reset timeframe, agreed following delays attributed to the coronavirus pandemic.

“The government has introduced safeguard clauses so that if any unjustified delays occur in the completion of the project, it will entail consequences for the construction company”.

Pilides’ comments come after the Auditor General’s office claimed the consortium’s demand for an additional EUR 25 mln to cover the increased cost of raw materials was “extortion”.

The Chinese consortium, led by China Petroleum Pipeline Engineering (CPP), is ready to walk away from the construction project if the additional EUR 25 mln is not given.

The audit service perceives the demand as extortion, noting the contract foresees that if a difference should arise, the matter is subject to arbitration, and the consortium has no right to back out.

“Abandonment of the project, in addition to the financial claims of the Republic, automatically entails that the consortium would be blocked at a European level.

“In our opinion, no state can be blackmailed, nor can it appear to be acting under threat,” said the Audit Office in a statement.

“Sixteen months since the start of the project was launched, which has a total duration of 24 months, it is still in the study stage, and not the slightest bit of work has been carried out on sight.”