Lawmakers criticized the Natural Gas Public Company (Defa) for mismanagement and lack of transparency as it presented its 2024 budget to parliament. This budget, amounting to €38 million in projected capital and operating expenditures, is the first since Defa transitioned from a private to a public law entity. Defa, the sole entity authorized to import and distribute natural gas in Cyprus, is seeking to create 36 new jobs this year. The 2024 state funding for Defa will be €12 million, a decrease from €18 million the previous year. The budget includes a €20.5 million allocation for investments in subsidiaries, specifically for the equity of the Natural Gas Infrastructure Company (Etyfa), which is tasked with developing the liquefied natural gas (LNG) terminal in Vasiliko. This project has experienced delays and disagreements with the contractor. Infrastructure related to the LNG terminal is expected to be completed within 2024. Once operational, Defa’s budget is expected to significantly increase, with projected annual revenues from LNG sales at €500 million. However, the LNG import project has faced challenges, including a halt in construction and disputes with the Chinese-led consortium responsible for the project. The completion date for the project has been postponed multiple times, with the current expectation set for July 2024. Concerns were also raised about Defa’s internal organization, including the absence of a job description and organizational chart. Defa officials have been summoned to parliament to address these issues, among others.
