Natural gas terminal project nears key milestone as ETYFA finalises project
The Cyprus Natural Gas Infrastructure Company (ETYFA) is nearing a crucial milestone in its efforts to complete the Vasilikos LNG terminal. This project has faced numerous delays and challenges, making its successful execution vital for Cyprus’ energy strategy. ETYFA is currently in the final stages of selecting a project manager who will oversee the terminal’s completion. This selection process is not just a routine task; it involves careful evaluation of bids and the identification of a candidate capable of navigating the complexities of this high-profile project.
George Ashikalis, the Chairman of ETYFA and the Natural Gas Public Company (DEFA), spoke to Phileleftheros about the intricate nature of the selection process. He noted that the cancellation of the original contractor, CPP, and subsequent work stoppages have added layers of complexity to the project. Despite these hurdles, Ashikalis expressed satisfaction with the progress made in the past four months, emphasizing that this timeframe is relatively swift considering the project’s troubled history.
Focus on Completion and Unresolved Challenges
Ashikalis highlighted that ETYFA has been proactive in addressing various challenges alongside the tender process. One significant issue has been the release of the Prometheus vessel, which faced logistical and contractual complications. Ashikalis referred to this resolution as a “major win for Cyprus’ interests.” The organization is also managing an arbitration case in London, with legal teams from both Nicosia and London advising on the matter. While Ashikalis did not disclose the status of the project manager evaluation, he confirmed that a decision and contract signing are imminent.
Unofficial sources indicate that the leading candidate for the project manager role is an internationally recognized firm with a strong track record in managing incomplete and problematic infrastructure projects. This selection is crucial, as the project manager will play a key role in steering the terminal toward completion, ensuring that the various components of the project align effectively.
Next Steps: Owner’s Engineer and Construction Tenders
Once the project manager is appointed, ETYFA plans to issue a tender for a new owner’s engineer. This role is essential, especially since Hill International’s contract has expired and was not renewed. The new project manager’s appointment will facilitate the identification of contractors needed to complete the jetty and onshore facilities at Vasilikos. Ashikalis stressed the importance of quickly assessing the site’s condition, which remains incomplete due to the previous contractor, CPP, who has yet to fully hand over necessary documentation, designs, and subcontractor agreements.
The incoming project manager will be responsible for cataloguing pending work and estimating costs to expedite the next construction tender. Ashikalis stated, “We aim to use all available legal provisions to fast-track the completion of this critical project.” This proactive approach is essential for overcoming the delays that have plagued the Vasilikos LNG terminal and ensuring that Cyprus can move forward with its energy transition.
Certification and Leasing Plans for the Prometheus
In addition to the project manager selection, ETYFA is preparing tenders for the certification and potential leasing of the Prometheus vessel as a Floating Storage and Regasification Unit (FSRU). The vessel has already received a Lloyd’s certification for LNG transport in Shanghai and will undergo further inspection in Malaysia to assess its readiness for FSRU operations. Initial inspections have alleviated concerns about significant deficiencies, with early estimates of repair costs ranging between €12–13 million likely being overstated.
As ETYFA awaits a final technical report to determine the vessel’s suitability for interim use as an FSRU, these developments represent a significant step forward in Cyprus’ energy transition. Ashikalis expressed cautious optimism that the project is finally gaining momentum after years of delays, marking a hopeful chapter in the nation’s energy landscape.
