The Cypriot Ministry of Finance is currently reviewing a request from the Natural Gas Public Company (DEFA) for an additional €200 million to complete the liquefied natural gas (LNG) import terminal at Vasilikos. The requested funds—whether in the form of a state grant, loan, or alternative financial structure—are considered "essential" to finalize both the onshore facilities and the Floating Storage and Regasification Unit (FSRU) "Promitheas."

DEFA’s request arises from a funding gap between the project’s original budget of €289 million and the actual costs incurred.

The Ministry of Finance, represented by Dionysios Dionysiou before the House Energy Committee, is currently evaluating the fiscal impact of providing additional support.

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Beyond the €200 million sought for land-based construction and the wharf, an additional €7 million is required to install two critical systems on the FSRU "Promitheas", ensuring its certification as a fully operational regasification vessel.

Energy Minister George Papanastasiou has set an end-of-2025 target for completing the LNG terminal, acknowledging it as an ambitious but achievable goal if decisions and procedures are expedited.

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The FSRU remains docked in Malaysia, where its conversion and certification process is ongoing.

Delays have been attributed to strict oversight by Cyprus’s General Accounting Office, which must approve each phase of the project.

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Onshore infrastructure—including distribution networks and the wharf—is at various stages of development. Some entities, such as the Electricity Authority of Cyprus (EAC) and private power producers, have already laid or funded sections of the natural gas pipeline.

The Cyprus Energy Regulatory Authority (CERA) has requested that DEFA formally submit its plans for the natural gas transmission grid. Discussions are ongoing between DEFA’s leadership and CERA’s new president to address regulatory concerns.

Members of the House Energy Committee and opposition representatives have raised concerns regarding rising project costs, repeated delays, and potential deterioration of infrastructure, particularly the wharf at Vasilikos.

Each month of delay is estimated to add approximately €10 million in extra emissions costs, increasing the financial burden on consumers and emphasizing the urgency of project completion.

The coming months will be critical in determining both the final funding mechanism and the realistic timeline for the terminal’s completion.