Investigations and contracts for Vasilikos
Energy Minister Michalis Damianou spoke on the TV program Mesimeri kai Kati about the Vasilikos project, the Great Sea Interconnector (GSI), and Cyprus’s natural gas prospects.
Regarding Vasilikos, Damianou noted that European-level studies have taken place, though the government has no further details on the findings. “Where investigations occur, some issues may appear,” he said, stressing that official contracts show no irregularities. Any potential concerns do not appear in the formal documentation.
He recalled that the project began several years ago under a consortium that has pursued arbitration against ETYFA, which remains ongoing regarding financial claims. Damianou emphasized that the project must continue regardless of the arbitration outcome.
Technical assessment and next steps
A French technical firm has completed an extensive evaluation of the project’s progress, covering both the pier and onshore works. Damianou described the study as highly technical but said ETYFA will submit proposals for the next stage. This will enable the selection of a new contractor and allow the project to finish as quickly as possible. He warned that Cyprus timelines often double due to bids, objections, and legal procedures, turning an 18-month technical schedule into a longer practical timeframe.
Role of private investors and Cyfield
Responding to questions about potential “hidden investors,” Damianou said he has no such information. He clarified that Cyfield plays no role in Vasilikos and only represents a potential site for future gas reception. Currently, only EAC can receive natural gas.
GSI interconnector and Nexans
Regarding the GSI electricity interconnector, Damianou confirmed that ADMIE is the implementing entity, while Nexans serves as subcontractor. Cyprus does not contract directly with Nexans. Updated studies are complete, and the next stage contractor selection will proceed in the coming days.
Ownership and costs
On Cyprus’s potential equity participation, no decision has been made. Damianou stressed that electricity security and interconnection with larger markets matter more than ownership. Costs will be shared over decades, and the expense should not be considered in isolation.
Vasilikos and GSI are complementary
Damianou dismissed claims that GSI competes with Vasilikos. Cyprus needs both projects: natural gas to reduce costs and emissions, and electric interconnection for supply security. He confirmed no pressure from business interests, emphasizing that Vasilikos remains the priority as the more advanced and faster-to-complete project.
Natural gas: Cronos and Aphrodite
The first Cypriot gas is expected from the Cronos field, with a final investment decision by the end of March. Gas will be delivered to facilities in Egypt and primarily marketed in Europe, with production targeted for 2027–2028.
Regarding the Aphrodite field, technical negotiations with Israel and involved companies are ongoing to resolve outstanding issues, aiming for a production timeline toward the end of the decade.
Also read: Eni finalises Cronos field plan, aims for 2027 gas exports
For more videos and updates, check out our YouTube channel
