Opposition parliamentarians have expressed profound unease regarding the clandestine management of the Vasiliko LNG terminal project. They have issued stark warnings that escalating expenses could potentially drive the total cost towards a staggering €1 billion. The state-owned natural gas infrastructure company, Etyfa, has been heavily criticised for its reluctance to divulge essential financial data. This reticence particularly concerns payments disbursed to technical consultants and the most recent evaluation provided by Technip, the government's appointed technical advisors.
A vigorous debate ensued on Tuesday during a parliamentary committee session focused on energy matters. Committee members persistently urged Etyfa's leadership to embrace greater transparency. Giorgos Ashikalis, Etyfa's chairman, deliberately withheld specific details, citing the sensitive nature of ongoing arbitration proceedings in London. He asserted that prematurely releasing such information to the media could seriously jeopardise the government's legal standing in these critical deliberations. This position has understandably intensified the frustration of Members of Parliament, who are now demanding absolute clarity regarding the project's financial trajectory and its current operational status.
Further contributing to the pervasive uncertainty, the Energy Minister, Michalis Damianos, offered evasive responses when questioned about a projected completion timeline for this ambitious infrastructure undertaking. While reaffirming the government's dedication to identifying a workable resolution, Minister Damianos attributed the prolonged delays to a combination of factors. These included cumbersome bureaucratic processes and the inherent complexities associated with public procurement procedures. Nevertheless, the minister did commit to returning to the committee at a later date with more definitive answers and a revised strategic plan.
The Vasiliko LNG project has encountered substantial difficulties since its very inception. Most notably, the abrupt withdrawal of the Chinese-led consortium, the project's former contractor, in July 2024, left the development in a precarious state. This premature departure necessitated a comprehensive reassessment of existing contracts and an extensive search for new partners. The subsequent arbitration proceedings in London are a direct consequence of this unresolved dispute, further complicating the path towards successful project completion.
Kyriacos Hadjiyiannis, the committee's chairperson representing the ruling Disy party, acknowledged the formidable challenges. He stated that the government is actively engaged in concerted efforts to "discover a viable path" towards bringing the project to fruition. However, the scarcity of concrete information provided by Etyfa and the minister has significantly fuelled anxieties among the opposition. They harbour serious concerns that the project's overall cost is spiralling uncontrollably upwards. The potential escalation to €1 billion represents a substantial departure from initial financial projections and raises critical questions about fiscal responsibility and effective project management.
The current stalemate highlights the imperative need for enhanced accountability and more open communication from Etyfa and the Ministry of Energy. As the project navigates complex legal battles and internal restructuring, the public and their elected representatives are left grappling with a significant deficit of essential information. Simultaneously, the spectre of substantially increased costs looms large over the future of Cyprus's energy diversification strategy. The successful resolution of the arbitration and the securing of a new, dependable contractor will prove absolutely pivotal in determining whether the Vasiliko LNG terminal can ultimately transition from a stalled ambition to a functional reality, and at what ultimate financial price.