A long-planned floating storage and regasification unit could finally be set to leave China where it has been languishing as disputes rage over the project — but it may need an interim home.
The country’s energy minister, George Papanastasiou, told Cyprus’ Parliamentary Committee on Energy this week that state-run Natural Gas Infrastructure Co and a Chinese consortium have reached an agreement for the delivery of the 137,000-cbm FSRU Etyfa Prometheas (ex-Galea, built 2002).
Papanastasiou said this is expected to be finalised within 60 days with changes to the guarantee period but no additional funding.
But the minister said that before the FSRU can leave, steps, including securing certifications, need to be completed.
He added that in the next two weeks, the energy ministry will select a consultant to arrange a tender to complete the unfinished pier and onshore infrastructure at the Vasilikos terminal.
Papanastasiou said the FSRU-based terminal could be completed by the end of 2025.
The FSRU project for Cyprus, which was originally due to be operational by 2019, has been mired in rows and delays.
This year the Chinese-led consortium building the terminal, China Petroleum Pipeline Engineering Co, comprising Metron Energy Applications, Hudong-Zhonghua Shipbuilding Group and Wilhelmsen Ship Management, walked off the job, saying it had not received payments on time.
The group blamed the developer’s lack of experience.
In July, it emerged that the European Public Prosecutor’s Office — the independent office of the European Union — had opened an investigation into the Vasilikos terminal project on suspicion of “procurement fraud, misappropriation of EU funds and corruption”.
About €101m of EU funds from its Connecting Europe Facility programme went to the project, with the EU supplying a further €230m in loans.
But even if the disputes are resolved and the FSRU is freed up to sail, those following the project said it will take time for the infrastructure to be completed in Cyprus.
They indicated a wealth of projects that could potentially use the unit in the interim, naming those in countries such as Bangladesh, Indonesia, Malaysia, the Philippines, Brazil and two in the Mediterranean region.
In 2023, TradeWinds reported that the United Arab Emirates was in talks over the FSRU Etyfa Prometheas.
Cyprus’ Natural Gas Infrastructure Co, which is 70% controlled by the nation’s Natural Gas Public Co and 30% by the Electricity Authority of Cyprus, was to own the FSRU, jetty and shoreside infrastructure for the project.
