Energy, Commerce, and Industry Minister George Papanastasiou assured that the construction of the liquefied natural gas (LNG) terminal at Vasilikos will proceed and be completed, despite the withdrawal of the Chinese consortium from the project.

When asked about the terminal at Vasilikos and the government's progress following the consortium's withdrawal, the Minister stated that the termination initiated by the Chinese consortium was confirmed by the Natural Gas Infrastructure Company (ETYFA), the other contracting party.

He emphasized that the terminal will be completed through alternative means, and a proposal will soon be submitted to the President of the Republic concerning the terminal's completion outside the current contract.

Commenting on the strategic importance of the terminal, the Minister highlighted that the project is essential for the Republic of Cyprus. It is linked to the import of natural gas, which will help reduce the cost of conventional electricity generation and, consequently, the high electricity prices in Cyprus. ETYFA, as the owner of all assets arising from the contract, has already taken over the Vasilikos construction site, which includes the unfinished jetty and the onshore part of the terminal.

When asked about any developments regarding the floating unit, Mr. Papanastasiou expressed confidence that there would be progress, possibly as soon as next week. He suggested focusing on the government's goal, which is essentially the terminal's completion.

In response to a question about whether he believes a "golden mean" will be found, the Minister said there is no doubt that an agreement will be reached concerning this project. Although it is a termination issue, there are clauses in the contract that survive termination and indicate the way forward for completing the terminal.

Through these clauses and in consultation with the Chinese consortium, he added, a resolution will be reached that will eventually lead to the completion of this critical project for the Republic of Cyprus.

Mr. Papanastasiou also addressed the issue of electricity prices, stating that there is currently a subsidy for consumers, which may be considered low given the climatic conditions we are experiencing, "but it is within our fiscal capabilities."

Additionally, the Government is focused on a more sustainable solution to prevent consumers from relying on subsidies. The aim is to lower the cost of electricity to benefit households, businesses, and, consequently, the Cypriot economy.

This will be achieved through three pillars. The first pillar is the introduction of natural gas, which will significantly help reduce the cost of electricity generated from conventional sources. The second pillar is the enhancement of renewable energy sources and the storage of electricity from these sources. The third pillar is the electrical interconnection currently being discussed between Israel, Cyprus, and Greece.

These three measures, the Minister emphasized, will lead to a substantial reduction in electricity prices, although they may not coincide in time. With the introduction of natural gas and the enhancement of renewable energy sources in the free and competitive electricity market coming in July 2025, he believes that we will see a significant reduction in prices compared to what we have today.