Government expects Vasiliko LNG terminal to operate by 2030

Vasiliko, Cyprus. The government anticipates that the Vasiliko LNG import terminal will become operational by 2030, Energy Minister Michalis Damianos told MPs on Monday. He said imported natural gas was expected to be used to generate electricity by that year.

Contract award targeted for 2027

Answering MPs’ questions following his presentation of the ministry’s 2027 budget, Damianos described the project as a government priority and maintained that it would be completed.

He said the aim was to award a tender covering the remaining construction before summer 2027, allowing work to start in the latter half of that year. The government is currently seeking contractors to complete the unfinished works.

Damianos linked the terminal’s completion both to ensuring adequate energy supplies and to reducing the greenhouse gas emissions allowances Cyprus needs to purchase.

Repeated delays and contractor withdrawal

The original project contract was awarded in December 2019, although construction began only a year afterwards. Completion was initially due in July 2022.

Four subsequent delivery deadlines also passed without completion: September 2022, July 2023, October 2023 and July 2024. The Chinese contractor withdrew in July 2024, attributing its departure to differences with the Cypriot authorities that it considered irreconcilable.

Akel MP Andreas Pashiourtidis requested an update on the status of Prometheas, the vessel serving as the project’s floating storage and re-gasification unit and an integral part of the LNG scheme.

Offshore reserves intended for export

Addressing Cyprus’ offshore natural gas resources, Damianos said the current position was that they would be commercially exploited through exports, rather than supplied for domestic use.