Dialogos

Fiasco at Vasilikos: Government Cannot Provide Timeline for LNG Terminal

Published February 10, 2026, 17:04
Fiasco at Vasilikos: Government Cannot Provide Timeline for LNG Terminal

The Cypriot government is facing difficulties in recovering €67 million from the European Commission, which had been granted for the LNG terminal in Vasilikos. The Minister of Energy, Commerce and Industry, Michalis Damianou, informed the Parliamentary Energy Committee that procedures are underway to recover the amount, through offsetting with other amounts owed by Cyprus to the EU and by returning part of the amount in cash. The government prioritizes the completion of the project, but cannot provide a specific timeline. A new contractor is being sought through a competitive process, as the initial company, Technip, cannot determine a realistic schedule. At the same time, the possibility of cooperation with a company from the United Arab Emirates to complete the project is being considered. The Minister stated that Technip's study, which includes an analysis of technical gaps, is being processed by ETYFA, which has the necessary expertise. The study will be submitted to Parliament, if legally permissible. The recovery of the €67 million from the EU is certain, according to the representative of the Ministry of Finance, and will be done by offsetting with other projects funded by the EU. A reduction in the amount Cyprus will receive from other projects has already been agreed, with a corresponding increase in the amount to be returned to the EU.