Nicosia, Cyprus. Cyprus could face serious electricity supply problems by 2030 if natural gas is not introduced by then, Energy Minister Michael Damianos said on Tuesday, describing completion of the delayed Vasiliko liquefied natural gas terminal as the country’s only viable option.
Minister sets 2030 deadline
Speaking before parliament’s House energy committee, Damianos said the Vasiliko project must be completed before 2030 and said it would certainly be finished before that date.
He said pursuing an alternative interim solution would likely take as long as, or longer than, continuing with the existing project because public procurement would require new tender specifications, bidding procedures, possible legal challenges and construction from the beginning.
Government backs Vasiliko project
“Our decision is to continue with the Vasiliko project because we need it. We need natural gas,” Damianos said.
He told the Cyprus Mail that completing the project is not only a government priority but also his main priority in the ministry, saying it should be finished as soon as possible and stressing that LNG is cheaper than diesel.
Damianos said Vasiliko and renewables are linked and described them as the two main elements the country needs.
Technical assessment and tender timetable
Damianos said a technical assessment by engineering company Technip, received by the government at the end of 2025, found the project to be incomplete.
He said whether the project is 40 per cent or 60 per cent complete is a highly technical question, but added that the only real solution is to finish it.
The minister said tender documents are expected to be finalised by the end of July. He added that a new board of directors has recently been appointed at Natural Gas Public Company (Defa), allowing Natural Gas Infrastructure Company (Etyfa) to complete the tender process.
Contract award target
The government aims to award the contract by the end of 2026 or in the first quarter of 2027, Damianos said. He added that he hopes the process will not be delayed by legal challenges so that construction can resume as soon as possible.
