Natural Gas Infrastructure Company (ETYFA), and the Chinese consortium have reached an agreement in principle for the delivery of the FSRU ‘Prometheus’, which will be implemented within 60 days, Cyprus’ Minister of Energy, Giorgos Papanastasiou told Parliament on Tuesday stressing that under these circumstances the completion by the end of 2025 of the entire terminal infrastructure, was considered a realistic scenario.

Papanastasiou said that the agreement provides for “a financial arrangement” since, as he added, some kind of performance bonds are being reduced. He clarified that no additional amount was given and that it concerns funds paid by the contractor and related to the gravity of the part of the project, which corresponded to the ship.

He also said that this agreement was outside the ongoing process before the Arbitration Court, which has already ordered for the implementation of this agreement.

Papanastasiou said that the ship has been given or will be given certification to carry out a voyage, while ETYFA will choose a destination with gasification infrastructure, so that the ship can also be certified as a floating natural gas storage and regasification terminal, infrastructures that do not exist in Vasilikos, where Cyprus’ Liquefied Natural Gas (LNG) Receiving and Regasification Terminal is being constructed.

Regarding the jetty and land infrastructure, Papanastasiou said that ETYFA was looking to find a consultant specialised in the completion of unfinished infrastructures, adding that the consultant would be selected within the next two weeks. The consultant will assist ETYFA in the preparation of the documents for the tender announcement for the completion of the Vassilikos terminal, he said.

The Minister also said that, under the circumstances, a realistic scenario for the completion of the floating gasification unit system and the rest of the terminal, but not for natural gas import, was the end of 2025.

Papanastasiou refuted criticism by MPs for delays in the pending legislation on the whole matter.

“The Department of Energy,” he said, “has a plan and has put every detail into that plan.” We need to deliver not an empty terminal, but natural gas to the conventional power producer and for them to deliver lower cost electricity, he added.

Papanastasiou also said that the banks that lent money for the project, namely the European Investment Bank and the European Bank for Reconstruction and Development will not demand the return of the money for the project, as long as they are given an implementation plan.

“Many efforts have been made and it has been explained to the specific agencies that the project can go ahead”, he said, adding that the €101 million grant from the EU remains pending, and that this depends on the investigation being carried out by the European Public Prosecutor’s Office.

Giorgos Ashikalis, chairman of the Natural Gas Public Company (DEFA) parent company of ETYFA, replying to MPs’ questions, said that they could not continue the project with subcontractors, since the contract has been terminated.