Cyprus aims to complete the construction of the LNG terminal in Vasilikos by the end of 2024, a move set to significantly reduce electricity generation costs, stated Minister of Energy, George Papanastasiou.

Construction of the LNG terminal was halted at the end of January due to a dispute led by the Chinese consortium CPP Metron, which was later resolved following negotiations between Papanastasiou and CPP officials. The project, deemed vital for energy diversification, is part of the EU's Projects of Common Interest and benefits from a €101 million grant.

"The grant is secure, and we aim to avoid any loss of EU funds, but introducing LNG for regasification at the terminal is our main goal," Papanastasiou emphasized, highlighting its potential to considerably lower electricity generation costs.

With the majority of electricity currently produced through conventional means, the Minister stressed the urgency of integrating natural gas into the energy mix.

He also referenced political support from China, the consortium's country of origin, underscoring the project's significance for both Cyprus and China.

Addressing future explorations in the Cypriot Exclusive Economic Zone, Papanastasiou revealed the government's anticipation of the ENI-led consortium's decisions regarding the Cronos gas field. Located in block six of the Cypriot EEZ, Cronos potentially holds between 2 and 3 trillion cubic feet of gas. A recent appraisal well (Cronos 2) confirmed the size and scale of the Cronos-1 discovery.

Additionally, he mentioned the Ministry's expectation of an updated development and production plan for the Aphrodite gas field by March 31 from the Chevron-led consortium. This plan, agreed upon in 2019, includes a floating production facility.