FSRU

‘, Light on the horizon for Vasiliko’

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‘, Light on the horizon for Vasiliko’

Energy Minister George Papanastasiou stated that there is progress in the construction of the liquefied natural gas (LNG) terminal in Vasiliko, with consultations ongoing between Cyprus’ natural gas infrastructure company and the Chinese state-owned company CPP Metron. The terminal is crucial for importing LNG to reduce electricity costs in the Republic of Cyprus. President Nikos Christodoulides denied discussions of a “velvet divorce” with CPP over the terminal, emphasizing that efforts are continuing.

No , ‘velvet divorce’ over Vasiliko LNG terminal

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No , ‘velvet divorce’ over Vasiliko LNG terminal

There are ongoing efforts to find a solution for the Vasiliko liquefied natural gas (LNG) terminal project, with no discussions of a “velvet divorce” with Chinese state-owned company CPP.

Cypriot government and Chinese firm nearing settlement

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Cypriot government and Chinese firm nearing settlement

The Cypriot Government and Chinese state-owned company CPP are working towards a velvet divorce, focusing on resolving the remaining works for the terminal at Vasilikos. The Chinese side has made financial demands for the delivery of the Floating Storage and Regasification Unit (FSRU) to its owner, ETYFA, which could amount to tens of millions of euros in addition to the funds already spent. Intensive consultations are expected to find a compromise exclusively for the FSRU, with legal advisors seeking a settlement based on the arbitrator’s decision. Once a settlement is reached for the FSRU, an agreement for the dissolution of cooperation regarding projects in Vasilikos is expected. Financial differences will be resolved through arbitration, with ETYFA seeking another contractor to complete the jetty and other projects on land.

LNG import blues

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LNG import blues

The LNG import project at Vasilikos in Cyprus has faced recurring problems and delays. The project, which aims to switch power generation from oil to natural gas, could reduce electricity prices by one-third, resulting in annual cost savings close to €300-€400 million. The project has faced issues due to a badly conducted tender, unclear terms of reference, and a contractor with no experience in such projects. The current contractor, CPP, has claimed additional costs and the project is not progressing as expected. The government is considering various options to complete the project, including finding a way to move forward with the present contractor, seeking independent expert advice, and exploring alternative plans if necessary.

Cyprus LNG project faces stalemate as CPP hardens stance

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Cyprus LNG project faces stalemate as CPP hardens stance

China Petroleum Pipeline Engineering (CPP) is seeking a financial settlement and termination of its involvement in the Vasilikos LNG terminal project in Cyprus. CPP may link the settlement to the delivery of the Floating Storage and Regasification Unit (FSRU) vessel named “Prometheus.” There are concerns that CPP withholding the FSRU could undermine previous assurances about the vessel’s readiness and certification. Technical interventions and modifications estimated at €10-15 million are needed for the FSRU to operate in Vasilikos. CPP has also requested an additional €200 million in a separate London arbitration. The situation could potentially escalate into a “hostage situation” involving the FSRU if CPP demands more payment for its delivery.

CMC call for meeting on , ‘neutral territory’ in Vasiliko spat

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CMC call for meeting on , ‘neutral territory’ in Vasiliko spat

– Chinese-led construction firm CPP-Metron Consortium Ltd (CMC) called for a meeting with a “decision maker” appointed by the Cypriot government in a “neutral territory” such as Dubai.
– The situation at the under-construction liquefied natural gas (LNG) terminal at Vasiliko has reached a crisis point.
– CMC has offered a comprehensive solution to de-escalate the situation and save the project.
– Cypriot President Nikos Christodoulides is set to meet with Chinese ambassador Liu Yantao to discuss the impasse.
– Etyfa has persistently breached payment obligations under the contract for the Vasiliko LNG facility.
– CMC suspended work in January as an “absolute last resort” due to payment issues but lifted the suspension in March on assurances from Etyfa.
– Etyfa has made changes to the project and has refused to pay for them, including refusing to take delivery of the completed FSRU.

CPP case: the Chinese ambassador has been summoned to the Presidential Palace on Monday

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CPP case: the Chinese ambassador has been summoned to the Presidential Palace on Monday

The Cyprus-China relations are being tested due to a dispute over a gas regasification terminal project in Vasilikos. The Chinese state-owned company CPP is reluctant to complete the project, demanding additional financial compensation of EUR 200 million. The Cypriot side argues that CPP’s objections to the contract terms are either in bad faith or due to financial inability. The collapse of cooperation with CPP would result in significant financial costs for Cyprus and delay the introduction of natural gas for cheaper electricity generation. The situation is further complicated by the fact that a floating gas regasification unit remains in Shanghai due to berthing modifications required by Lloyd’s Register. If the terminal project is frozen, Cyprus may face significant financial consequences, with responsibility shared between the Cypriot government and the Chinese state-owned company CPP.

CMC hits back in escalating Vasiliko spat (Updated)

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CMC hits back in escalating Vasiliko spat (Updated)

Fact: The Chinese-led construction firm CPP-Metron Consortium Ltd (CMC) has accused Natural Gas Infrastructure Company (Etyfa) of persistently failing to make milestone payments for the under-construction liquefied natural gas (LNG) terminal at Vasiliko.

CPP admits inability to complete the terminal due to Cyprus’s demands

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CPP admits inability to complete the terminal due to Cyprus’s demands

CMC, a Chinese state-owned company, has accused ETYFA of making significant changes to their agreement to build the Vasilikos LNG pier project in Cyprus. The company claims that ETYFA demanded the construction of an LNG export facility instead of the originally agreed-upon LNG reception and regasification facility. This change has led to technical and cost issues, making the project unsustainable for CMC. Despite working hard to meet ETYFA’s new demands, CMC insists that they should be compensated for the extra labor and materials required.

Row over Vasiliko terminal deepens

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Row over Vasiliko terminal deepens

The consortium constructing the natural gas terminal at Vasiliko accused Etyfa of not taking delivery of the vessel “Prometheas” despite it being ready since mid-January 2024.