**NICOSIA** – Opposition parliamentarians have voiced grave concerns over the opaque handling of the Vasiliko LNG terminal project, warning that escalating expenses could propel the total cost towards the €1 billion mark. The state-run natural gas infrastructure company, Etyfa, has come under fire for its reticence in disclosing crucial financial details, particularly concerning payments made to technical consultants and the latest assessment from Technip, the government's appointed technical advisors.
The heated exchange unfolded on Tuesday during a session of the parliamentary committee on energy, where members pressed Etyfa’s leadership for transparency. Giorgos Ashikalis, the head of Etyfa, declined to furnish the committee with specific information, citing the sensitive nature of ongoing arbitration proceedings in London. He argued that any premature disclosure of such details to the media could jeopardise the government's position in these crucial legal deliberations, potentially undermining national interests. This stance has exacerbated the frustration of MPs, who are demanding unequivocal clarity on the project's financial trajectory and operational status.
Adding to the prevailing uncertainty, the Energy Minister, Michalis Damianos, remained evasive when questioned about a projected completion timeline for the ambitious infrastructure project. While acknowledging the government’s commitment to finding a viable solution, Minister Damianos attributed the protracted delays to a confluence of factors, including cumbersome bureaucratic processes and the inherent complexities of public procurement procedures. The minister did, however, pledge to return to the committee at a future date with more concrete answers and a revised plan of action.
The Vasiliko LNG project has been mired in difficulties since its inception, most notably following the abrupt withdrawal of the Chinese-led consortium, the project's former contractor, in July 2024. This premature departure left the development in a state of limbo, necessitating a reassessment of contracts and a search for new partners. The subsequent arbitration proceedings in London are a direct consequence of this unresolved dispute, further complicating the path towards project completion.
Kyriacos Hadjiyiannis, the committee’s chairperson from the ruling Disy party, acknowledged the challenges, stating that the government is actively engaged in efforts to "find a way" to bring the project to fruition. However, the lack of concrete information provided by Etyfa and the minister has fuelled anxieties among opposition ranks, who fear that the project's price tag is spiralling unchecked. The potential escalation to €1 billion represents a significant deviation from initial projections and raises serious questions about fiscal responsibility and project management.
The current impasse underscores the critical need for enhanced accountability and transparent communication from Etyfa and the Ministry of Energy. As the project navigates legal battles and internal restructuring, the public and its elected representatives are left grappling with a deficit of information, while the specter of substantially increased costs looms large over the future of Cyprus's energy diversification strategy. The resolution of the arbitration and the securing of a new, reliable contractor will be pivotal in determining whether the Vasiliko LNG terminal can eventually move from a stalled ambition to a functional reality, and at what ultimate cost.