The completion of the liquefied natural gas (LNG) terminal upgrade in Vasiliko has become a key issue for Cyprus’ National Petroleum Company (ETYFA) and the Ministry of Energy, as authorities work to address delays and operational constraints tied to the project.
Completion Challenges And Operational Bottlenecks
One of the main challenges involves finalizing ongoing construction and technical work linked to the LNG terminal upgrade. Officials are managing delays while attempting to maintain energy supply stability and ensure the project remains aligned with long-term energy planning. The complexity of the infrastructure and regulatory requirements has added pressure to project timelines.
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Management Of The Prometheus Vessel
A second major issue concerns the Prometheus vessel, which was converted into a floating storage and regasification unit (FSRU) intended to support LNG operations in Cyprus.
Authorities are exploring options to test the vessel’s capabilities and potentially lease it as an interim solution before deployment in Cyprus. However, current European Commission rules restrict the use of the vessel for profit-generating operations at foreign terminals, as EU funding for its conversion was granted specifically to support Cyprus’ energy needs.
European Regulatory Constraints And Cyprus’ Strategy
Cyprus is seeking regulatory clarity from the European Commission regarding future use of the vessel. Although the project initially received €101 million in EU funding, earlier procedural issues resulted in partial repayment, with approximately €68 million returned from €71 million already disbursed.
Officials argue that the project has since relied largely on domestic financing and loans from institutions including the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD). They say greater flexibility in using the vessel could help reduce operational costs while preserving asset readiness.
Successful Conversions And Future Implications
Government sources say technical modifications to the Prometheus have been completed, and the vessel is currently moored at the Kuala Linggi Base in Malaysia under the management of Norwegian firm Wilhelmsen.
The main unresolved issue remains regulatory approval, as prolonged inactivity could increase costs and delay the broader LNG strategy tied to Cyprus’ energy transition.
