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President expresses concern over delay in the import of LNG project

21/01/2022 16:47

Cyprus President Nicos Anastasiades has expressed concern over the delays in the infrastructure works concerning the import of liquefied natural gas for electricity generation in Cyprus implemented by the Natural Gas Public Company (DEFA).

The infrastructure works, which were initially expected to conclude before the end of 2022, are now expected to be completed by July 2023 due to the Covid-19 pandemic.
President Anastasiades received the President of DEFA Nicos Kastellanis, who briefed him on the progress of the infrastructure works involving the construction of a floating Storage and Regasification Unit (FRSU), a jetty and mooring facilities in the Vasilicos area. Ministers of Energy and Finance Natasa Pilides and Constantinos Petrides respectively also attended the meeting.
“The President of the Republic expressed concern over the observed delay, requesting both DEFA and the Ministry of Energy to monitor the developments closely both with regard to the progress in the infrastructure works as well as the LNG provision,” a press release issued by the presidency writes, adding that the President requested that the process should be expedited.
Kastellanis briefed the President over the progress achieved so far with regard to the infrastructure for the import of LNG, as the project is implemented by ETYFA, a subsidiary of DEFA.
The project will delay by nine months, due to the Covid-19 pandemic, the ensuing travel restrictions and problems in plants operation, as well as the lack or reduced availability of certain raw materials and as a result the project is expected to be completed by July 2023 as previously announced, the presidency added.
Described as the largest energy project in Cyprus with a total value of €289 million, the project has obtained EU financing of €101 million through the Connecting Europe Facility, €43 million from the Electricity Authority of Cyprus as equity investment in ETYFA, as well as loans from the European Investment Bank and the European Bank of Reconstruction and Development amounting to €150 million and €80 million respectively.
The consortium of China Petroleum Pipeline Engineering CO LTD, Metron SA, Hudong-Zhonghua Shipbuilding και Wilhelmsen Ship Management won the contract for the infrastructure works, while DEFA is in negotiations with LNG suppliers.