Cyprus will soon issue tenders for the completion of the Liquefied Natural Gas (LNG) Terminal for electricity generation, despite the recent termination of a €0.5 billion contract with CPP-METRON Consortium Ltd, a Chinese-led consortium. This move follows an investigation by the European Public Prosecutor (EPPO) into potential tender fraud and the misappropriation of EU funds, Energy Minister George Papanastasiou announced.

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Speaking on Tuesday after an extraordinary meeting with the parliamentary committee on Energy, Papanastasiou addressed the investigation by the EPPO. He emphasized that the government remains committed to completing the LNG import terminal, noting its significance in reducing the cost of conventional electricity generation.

Papanastasiou acknowledged that following the contract’s termination, the government’s options are now “more limited.”

When asked about the next steps, he stated that the project must proceed regardless of the challenges. The Natural Gas Infrastructure Company (ETYFA), a subsidiary of the Cyprus Natural Gas Public Company, has decided to ensure transparency by launching a tender process for both the terminal and the jetty.

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“The process is underway, and an open tender will be launched soon,” he said.

In response to a question about the Floating Storage and Regasification Unit (FSRU) “FSRU Promitheas,” which is currently in a Shanghai shipyard, Papanastasiou confirmed that the vessel is owned by ETYFA. Legal proceedings are in progress to transfer ownership of the vessel to ETYFA.

During the meeting, it was noted that if the ship is not delivered to the Cypriot authorities, the government will consider leasing another FSRU once the terminal facility’s construction is completed.