French firm hired to jumpstart stalled Cypriot LNG project

French-based engineering company Technip Energies has been awarded a contract to perform project management consultancy (PMC) services at the liquefied natural gas (LNG) import terminal being developed by Cyprus’ Natural Gas Infrastructure Company (ETYFA).

As disclosed in a social media post, Technip was appointed by ETYFA to complete the LNG import terminal project in Vassilikos, Cyprus. The tender for the provision of management services for the LNG terminal was announced last September.

Valued at approximately €542 million, the project included €101 million from the Connecting Europe Facility (CEF) program as a project of common interest (PCI). It was originally scheduled to be finalized years ago, aiming to create an entry point for natural gas to Cyprus.

In November 2023, the China Petroleum Pipeline-led CMC consortium in charge of converting the Prometheus from an LNG carrier to a floating storage and regasification unit (FSRU), shared that sea trials were completed. At the time, the terminal was expected to be opened in July 2024. 

One month after the delivery ceremony for the FSRU taking place in January 2024, CMC alleged that ETYFA “withheld tens of millions in payments, changed the nature and scope of the project and has consistently interfered with essential design and procurement activities.”

The project faced another obstacle last summer, when the European Public Prosecutor’s Office (EPPO) in Nicosia, Cyprus, launched an investigation into the LNG terminal project due to suspected procurement fraud, misappropriation of European Union (EU) funds, and corruption.