Cyprus’s Natural Gas Public Company (DEFA) has requested an additional €200 million in funding from the Ministry of Finance to complete the liquefied natural gas (LNG) terminal at Vasilikos.
The request was discussed during a meeting of the House Energy Committee on Tuesday, with officials confirming that the government is evaluating options for state support or loan financing. The additional funds would supplement the original contract value of €289 million.
Dionysis Dionysiou, a representative of the Ministry of Finance, stated, “Support could be provided through direct funding or loans,” adding that the fiscal implications of various financing scenarios are being assessed. Energy Minister George Papanastasiou reported progress on the floating storage and regasification unit (FSRU) vessel and shore-based infrastructure but acknowledged delays due to procedural constraints.
“All ETYFA procedures operate within legal frameworks and undergo Treasury Department review, which may cause some delays,” Papanastasiou explained. The minister expressed optimism that the project could be completed by late 2025, describing it as “an optimistic but achievable target.” He also noted that ETYFA, DEFA’s subsidiary responsible for the project, is working to expedite coordination with the Treasury Department.
Regarding the FSRU vessel Prometheus, currently in Malaysia, Papanastasiou disclosed that two components require improvements to meet certification standards. The Norwegian vessel management company Wilhelmsen has been instructed to implement necessary modifications.
The Electricity Authority of Cyprus (EAC) confirmed that pipeline infrastructure to transport gas from the terminal to its power station has been installed. George Chrysochoos, owner of the PEC power station under construction at Vasilikos, stated that PEC has also proceeded with pipeline installation at its own expense.
The Cyprus Energy Regulatory Authority (CERA) indicated that DEFA must submit formal applications regarding natural gas transmission networks, with meetings scheduled to address these requirements.
DEFA (Cyprus Natural Gas Public Company) is a state-owned company responsible for the import, storage, and distribution of natural gas in Cyprus.
ETYFA (Natural Gas Infrastructure Company) is a subsidiary of DEFA, overseeing the development of LNG infrastructure, including the Vasilikos terminal.