Construction work at the Vasilikos liquefied natural gas terminal has been suspended pending completion of a technical review by French contractor Technip, Energy Minister Giorgos Papanastasiou told parliament during a closed session on Tuesday, according to sources.
The suspension follows preliminary findings that the existing Front-End Engineering Design prepared by Chinese contractor CPP requires comprehensive revision due to technical inadequacies.
Technip, selected through competitive tender in May 2025 as project coordinator, is assessing CPP’s work before preparing a new implementation roadmap for state company ETYFA.
Technip evaluates Chinese contractor’s incomplete design work
The French company has preliminarily informed ETYFA that CPP’s original technical design for jetty and onshore infrastructure is insufficient and technically unsatisfactory in several areas, according to parliamentary committee discussions.
Technip expects to deliver its assessment report within days. The evaluation covers both the original FEED documentation and implementation failures to date.
The review will likely recommend new or supplementary design processes involving international contracting firms submitting proposals covering technical specifications, costs, and completion schedules.
New tender process awaited after technical assessment
Energy Ministry and ETYFA officials have concluded that a technical assessment is essential six years after the original CPP contract signature.
The new roadmap will prioritise a revision of the existing jetty and onshore infrastructure designs. Construction will resume only after a new contractor selection through separate tenders for jetty components and onshore infrastructure.
A Hill International representative, previously serving as owner’s engineer before ETYFA terminated their contract, told the parliamentary committee they would never have awarded the terminal project to CPP.
The Auditor General’s report on the 2019 contract award highlighted CPP’s apparent project completion inability, findings subsequently confirmed by implementation performance.
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