Economy category powered by

Energy Minister forms project monitoring body for Vassiliko LNG terminal

A project monitoring body that will keep track of and supervise every issue related to the construction of the liquefied natural gas terminal in Vassiliko will be formed by Energy Minister George Papanastasiou, within the Ministry, following the resumption of construction works at the terminal.

Energy Minister George Papanastasiou and a delegation from the Chinese CPP consortium recently held a meeting during which an agreement was reached and the contractor resumed works for the construction of the jetty and other facilities.

The Minister explained the monitoring will help strengthen trust between the parties and ensure that there is proper and appropriate monitoring of the project. This group will have the expertise to supervise and monitor the project and at the same time will work in every direction within powers granted by the Minister, Papanastasiou told CNA.

Regarding a new project delivery schedule, Papanastasiou said that the company, CPP-METRON CONSORTIUM LTD, will notify on a new timetable within the next couple of weeks.

The Minister of Energy together with President of the Republic at the end of last week visited the construction site in Vassiliko and were briefed by the contractor on the progress of the project.

Regarding the project monitoring body to be set up, George Papanastasiou explained that it will comprise 1-2 engineers in charge of monitoring and supervising the project and that they will be in constant contact with the Ministry, the Natural Gas Public Company (DEFA), the Natural Gas Infrastructure Company (ETYFA) and the contractor. They will also manage any disputes that arise. "We will not let differences grow and create relationship problems," Papanastasiou stressed.

He also noted that they will also be the ones who will monitor all the aspects of the project in order to limit bureaucracy and ensure that further delay is avoided.

"This group will be the eyes of the Ministry in the project and in fact in the field, on the ground and not in the offices," he noted clarifying at the same time that it will not interfere with the contractual obligations of the two contracting parties.

Asked whether there is now a new timetable, the Minister of Energy said that as the contractor promised they will come up with a new project delivery schedule this week or the next.

Replying to a comment that the resumption of works creates expectations, he noted that the issue of providing affordable electricity is very high on the Government's agenda, indicating that this project needs good management, that concerns both sides, the Chinese consortium and the side of DEFA and ETYFA.

The goal of reducing the price of electricity goes through the operation of the LNG terminal, the President of the Republic, Nikos Christodoulides, said while visiting the gas terminal in Vassilikos, in view of the resumption of construction works.

Accompanied by Papanastasiou, President Christodoulides said that he is visiting the site to show in practice the Government's satisfaction with the results of yesterday's consultation between the Minister and the company and to be informed "on how work is starting again and how soon it can be completed".

One of the main goals of the Government and more specifically of the Ministry of Energy, said President Christodoulides, is to lower the price of electricity.

"The terminal's operation is a key component towards what we want to achieve, what we have promised the people and we will do so, to lower the price of electricity, along with other actions that we as a Government are already taking measures, such as renewable energy," he said. 

He also said that the Government is taking other actions regarding the need for electricity interconnection. "We are working on several pillars, and a key pillar is the operation of the terminal," he noted.

To a journalist's comment on the LNG unit, President Christodoulides said that "it is part of the whole effort". "Some decisions were taken on how to proceed in the immediate future, and we will discuss all this again with both the Minister and the company," he added.

Speaking to CNA Papanastasiou said the CPP-METRON CONSORTIUM LTD will resume its works on 16 March. The consortium had undertaken the construction of the LNG import terminal at Vassilikos, in Larnaka district.

The project was supposed to be delivered in September 2022 but, after three delays, it is now scheduled to be delivered in July 2024. The process was terminated pending arbitration between the Republic of Cyprus and the consortium.

(Source: CNA)

Read More

Bank of Cyprus: Shareholders greenlight the dividend and Board members elected and re-elected
Takis Arapoglou: “2023 was a year we fully reaped the benefits of the Bank’s transformation”
Panicos Nicolaou: Strong performance for Bank of Cyprus with a distribution over six-times higher than 2023
Cyprus joins the International Propeller Club of the United States (pics)
International and local experts address the 7th Cyprus HealthCare Conference (pics)
Supporting rural areas is a primary goal for the government, President says
AstroBank: Investment opportunities in Paphos
Cyprus hosting regional Ministerial Meeting on immigration
Fokion Karavias: “All our strategic initiatives, including Hellenic Bank in Cyprus, are on track”
Leptos Group: Paphos remains the champion of property sales to foreign nationals