Cyprus could face serious electricity supply problems by 2030 if natural gas is not introduced by then, Energy Minister Michael Damianos warned on Tuesday, insisting that completing the long-delayed Vasiliko liquefied natural gas terminal is the country’s only viable option.
Speaking before parliament’s House energy committee, Damianos said the Vasiliko project “must be completed before 2030 – and it certainly will be completed before 2030.”
He argued that pursuing an alternative interim solution would likely take just as long, if not longer, because of the public procurement process, which would require new tender specifications, bidding procedures, possible legal challenges and construction from scratch.
“Our decision is to continue with the Vasiliko project because we need it. We need natural gas,” he said.
Damianos told the Cyprus Mail that it is not only a priority for the government but it is also his “main priority in this ministry, to finish this as soon as possible”, highlighting how essential the project is as “LNG is cheaper than diesel.”
“Vasiliko and renewables are connected, they are the two main things we need,” he said.
Damianos said a technical assessment carried out by engineering company Technip and received by the government at the end of 2025 found the project to be incomplete.
“Whether it is 40 per cent or 60 per cent complete is a highly technical question, but the only real solution is to finish this project,” he said.
The minister said tender documents are expected to be finalised by the end of July. He added that a new board of directors has recently been appointed at Natural Gas Public Company (Defa), allowing Natural Gas Infrastructure Company (Etyfa) to complete the tender process.
The government aims to award the contract by the end of 2026 or during the first quarter of 2027, he said, expressing hope that the process will not be delayed by legal challenges, allowing construction to resume as soon as possible.
