Cyprus’s long-delayed liquefied natural gas terminal at Vasilikos is set for further delays after its project manager called for a full redesign of the unfinished facility — a step that state energy bodies say they cannot afford.
ETYFА and DEFA have concluded that a limited-scope design is the minimum needed before launching a tender for a new contractor, according to information available to Phileleftheros.
Technip, the French firm appointed as project manager, disagrees. The company is pushing for a comprehensive redesign before work resumes, a position it set out in a gap analysis report delivered to ETYFА on 19 December 2025.
A full redesign would take many months and cost significantly more than ETYFА can readily fund, as any such spending requires approval from the Central Committee of Changes and Requirements.
ETYFА is therefore looking to commission Technip for a faster, limited design covering the essentials — enough to address some of the gaps identified in the earlier analysis — before drawing up tender documents for a new contractor.
The new tender is also expected to require the winning contractor to carry out a more thorough design process before starting construction on the jetty and onshore infrastructure.
The incoming contractor will also need to assess whether materials and equipment procured by Chinese firm CPP — which abandoned the project and remain on site unused — are fit for purpose.
If any are deemed unsuitable, the contractor will have the option of sourcing replacements. In the meantime, efforts will be made to obtain certification for some materials from their manufacturers.
Why no one will commit to a timeline
The refusal of ETYFА’s board and Energy Minister Michalis Damianos to give a completion timeline at the last parliamentary Energy Committee session was not without reason.
ETYFА has finished assessing the gap analysis and identified its priority next steps. But no one can yet say how long Technip’s limited design will take, how long tender documents will take to finalise, or when contractors will be formally invited to bid — whether through an open tender or a shortlist of four or five firms capable of picking up where CPP left off.
The government has decided the project will be completed regardless of how long it takes, sources say. The final cost cannot be estimated at this stage, as it will depend on the tender documents and the design produced by the chosen contractor.
Phileleftheros understands that a call for tenders is not expected before summer 2026. Once work eventually begins, completion is estimated to take approximately 30 months.
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