Dialogos

High Costs and Delays Shadow LNG Project in Cyprus

Published March 10, 2026, 17:01
High Costs and Delays Shadow LNG Project in Cyprus

DEFA is proceeding with a tender for contractors for the Liquefied Natural Gas (LNG) terminal in Vasilikos, aiming for natural gas to arrive by 2030, although RAEC expresses doubts about the timeline. During the session of the Parliamentary Energy Committee, the President of DEFA, Giorgos Asiekalis, informed about the extension granted to Technip for the project design and the progress in installing the floating storage and regasification unit. Simultaneously, the Committee President, Kyriakos Hatzigiannis, criticized the use of consultants, requesting an investigation by the Auditor General regarding potential irregularities and the effectiveness of the consultants. The Auditor General clarified that the audit will focus on the organization and not the consultants directly, while concerns were raised about the increasing cost of the project and delays. The discussion highlighted the need for transparency and efficiency in the implementation of the project, as well as the possibility of additional billions of euros due to delays and environmental impacts.