Cyprus’ state-owned Natural Gas Infrastructure Company (ETYFA) is entering the final phase of negotiations aimed at resuming construction on its long-delayed liquefied natural gas (LNG) terminal at Vasilikos, navigating complex legal challenges and competing private interests spanning three countries.
ETYFA is urgently prioritizing two objectives: securing an agreement within days with a major European firm—not Greek—to take on project coordination for the next 12–18 months, and finding a legal pathway to immediately assign completion of the jetty works to experienced contractors without launching lengthy new tenders.
Progress has been made on both fronts in recent days despite external interference, some of which is suspected to be linked to interests associated with China’s CPP, sources familiar with the matter said. CPP had previously partnered with a consortium led by Cyprus’ Multimarine Services and Greece’s Spanopoulos Group, before abruptly halting work in 2023. The consortium has since taken legal action to recover tens of millions of euros in outstanding payments.
ETYFA is reportedly in talks with the former subcontractor to fast-track jetty completion under a compressed schedule, leveraging prior technical groundwork. A legal opinion obtained by ETYFA’s UK-based legal counsel supports this approach.
While tenders for remaining onshore infrastructure will proceed under the upcoming project manager, the government is closely monitoring developments. Officials view the terminal’s completion as critical to energy security and price stability, with delays threatening electricity supply during peak demand periods.
