The selection of a project manager to complete Cyprus’ liquefied natural gas (LNG) regasification terminal at Vasilikos has taken much longer than originally planned by the government and the Natural Gas Public Company (DEFA) – Natural Gas Infrastructure Company (ETYFA).
The contractor selection was initially scheduled for February, following a tender issued in August 2024. However, the decision and contract signing only occurred in May 2025.
This significant delay further postpones completion of the works, terminal delivery, and the introduction of natural gas for electricity generation.
ETYFA and Energy Ministry officials attribute the delay to complex and time-consuming evaluation and negotiation procedures, but this does not change the current situation: the new effort to complete this essential infrastructure project begins at a time when it should already be fully operational.
No one can currently specify precise timelines or final costs for completing the remaining works at sea and on land, constructing the pipeline network to power plants, finalising LNG purchase agreements, and other components.
However, ETYFA’s process has led to the selection of a genuinely large, successful and established company in the field of construction and management of major energy projects.
Technip Energies (T.EN PMS Services Ltd), which has taken over coordination of works and terminal completion, is a global giant in its sector.
Its selection provides optimism that the project will finally be freed from the impasse caused by previous handling by DEFA, ETYFA, and Chinese firm CPP.
Technip Energies’ website states the company has 17,000 employees operating in 34 countries, with 450 projects under execution and seven decades of operation.
ETYFA’s announcement yesterday provided no information about immediate next steps. Philenews sources report that in the next 3-4 days, ETYFA and Technip Energies officials will meet to plan the works and set timelines, allowing the company to begin work next week.
Initial stages will require a complete assessment of the situation at Vasilikos and preparation of documents for new tenders, primarily for onshore works.
A major unresolved issue remains the completion of the jetty where the FSRU Prometheus will dock. The vessel is currently waiting in Malaysia for equipment under construction to be certified as an FSRU, as it is currently classified as an LNG Carrier.
ETYFA has obtained an opinion from its legal advisor in London that, based on the original contract with CPP, it can utilise the VPSM consortium (previously CPP’s subcontractor for jetty construction) without another competitive procedure.
Negotiations between ETYFA and the consortium have faced numerous challenges in recent months but are considered to be in their final stages.
On-site inspections of equipment that has been submerged for months are already being planned to determine whether new additions to the jetty can begin immediately or if maintenance will be required.
However, there is currently no final agreement with VPSM (Multimarine Services and Spanopoulos Group).
