It’s an ugly aftermath in the wake of Chinese company CPP being stripped of the contract for natural gas LNG infrastructure by ETYFA (Natural Gas Infrastructure Company) a subsidiary of the Natural Gas Public Company (DEFA) and it doesn’t seem to be taking it very well, demanding massive compensation for the release or the disengagement if you will of the Prometheus offshore natural gas unit, currently docked at Vasiliko.
According to a report by Phileleftheros’s Chrysanthos Manoli, there is not much to go on through official channels in terms of information, but a number of sources confirm that the situation is becoming increasingly complicated and aggressive when it comes to the Chinese compensation demands.
Initial estimates put the price on the unit’s release at 30 to 35 million euro, but it seems that CPP is now singing a different tune, raising the bar quite significantly and to the point where the government believes it has no leeway to compromise, at least during the present time.
Sources with knowledge of backstage discussions note to Philenews that the Chinese company is demanding the suspension of arbitration at the London International Arbitration Court, as it has failed thus far in the process, to substantiate demands and claims.
Such a possibility would pose the risk that the Natural Gas Infrastructure Company would be forced to pay 200 million euro, the Chinese company’s price tag, as well as relinquishing the right of claiming at least 65 million in compensation for contractual delays in delivering the work and an equally large amount for the offshore natural gas unit virtually being held hostage by CPP.
The Chinese company is also demanding that Cyprus not liquify the work implementation guarantees, estimated at 70 million euro.
