All alternatives remain on the table and are being discussed between the contracting parties, Minister of Energy George Papanastasiou said with regard to the LNG import terminal for electricity generation at Vassiliko, Limassol.

The issue was discussed in a closed meeting of the parliamentary committee on energy.

Cyprus and the Chinese consortium, CPP Metron (CMC) are in an arbitration process in London with the Chinese construction firm reportedly filing a claim for an additional €200 million, a claim disputed by the Republic. The project has received several delays so far, with the latest deadline scheduled for end 2025.

Speaking after the meeting, Papanastasiou said both contracting parties show will to reach “something different which will include a deadline for the completion of the project “and possibly outside the contract.”

“All alternatives are on the table” and are being discussed by the contracting parties, he said responding to a question whether the contract may be terminated.

However, Papanastasiou said that on the one hand there is a contract which we insist should be executed by the contracting parties but on the other “there is will by both parties to conclude to something different.”

“But this is up to both parties,” he added.

With regard to the Floating Storage Regasification Unit (FSRU) which is almost ready in Shanghai, China, Papanastasiou said the ship is ready and we are in consultation with the contractor and the Ship Register which will give a certain certification so that the ship with all necessary documents will set sail for Cyprus.

He said the first certification concerning the transfer of Liquified Natural Gas could be given while the ship is in Shanghai, whereas the second one would be given when the FSRU is connected with the land facilities so it could be tested as LNG terminal.

Replying to a question whether any construction works are taking place in the LNG facilities, Papanastasiou said that some works are taking place on land without the desired speed, while no work is taking place on the jetty.

Commenting on press reports that Cyprus did not assume ownership of the FSRU because the contractor asks for additional money, Papanastasiou, responded by saying “everything is on the negotiating table.”

On his part, Kyriacos Hadjiyianni, the Committee Chairman said that the situation is particularly critical, adding that rationality should prevail and the project should be concluded on the basis of its targets and the current contract.