Alpha News

"Swelling" Cost for Vasiliko Terminal: Unanswered Questions, "Shadows" and Delays

Published January 20, 2026, 19:26

The House Energy Committee held a heated session with the Minister of Energy and the Chairman of DEFA regarding the scandal surrounding the LNG terminal in Vasiliko. MPs expressed concern over the delays, unanswered questions, and potential cost increases of the project, which is estimated could reach one billion euros, instead of the initial 315 million. The General Secretary of AKEL, present at the session, strongly criticized both governments, pointing out that Cyprus has already paid 1.3 billion euros for pollution since 2018. He expressed fears of potential fraud and overbilling in the arbitration with the Chinese consortium. The refusal of the DEFA Chairman to provide information on consultants' fees, citing leaks to the press, caused tension and criticism. MPs demanded transparency regarding which consultants are being paid and for what projects, as well as the terms of the contracts. The Chinese consortium is demanding 136 million euros in compensation from Cyprus for the termination of the terminal construction contract. The session highlighted serious issues of transparency and accountability regarding the project, and is expected to continue next week.