The long-awaited liquefied natural gas terminal project in the Mediterranean Sea's Vasilico Bay has reached a turning point, with multiple international engineering companies expressing their intention to cooperate. Cyprus based contractor Cypield is in talks with CHEC to form a bidding team and plan to revitalize this energy project that has been embroiled in contract disputes and funding verification controversies. The estimated cost of the project is about 180 million euros, and the construction period is expected to be two years. Previously, the project was completely suspended in July 2026, and six companies submitted their intentions to take over.

Multiple companies bidding for projects

According to media reports in Cyprus, CHEC has submitted a letter of intent to the local natural gas infrastructure company Etyfa, while Italy's Saipem, three top contractors in Greece, and Norway's ECOnnect Energy have also expressed their willingness to participate. The Minister of Energy stated that the number of interested companies will be verified on Monday. Etyfa first reviews the intention materials, selects suitable entities to submit complete quotations, and Technip Energies provides process consulting for the state-owned enterprise.

Multiple challenges waiting to be solved

The project's shutdown in July 2026 was due to the termination of the CPP Metron consortium contract by the owner, which was formed by CNPC and Greek Metron Energy Applications. Both parties have had disagreements regarding payment, and the supporting floating storage device has been stranded in Malaysia and has not yet completed certification. The EU has requested the refund of nearly 69 million euros in grants, and the European Prosecutor's Office has simultaneously launched investigations into procurement fraud and fund misappropriation. Keywords: Cyprus LNG receiving station, CHEC bidding

The Vasilico terminal is a core project of Cyprus' energy strategy, which plans to rely on natural gas to generate low electricity costs and reduce carbon emissions. Many energy infrastructure projects in the Mediterranean region have been delayed due to conflicting payments between Party A and Party B. The market still has expectations for the project, but further progress depends on the results of the bidding review. EU funding disputes and judicial investigations will directly determine whether project financing can be implemented. Etyfa's next step is to screen potential bidders and begin the formal quotation process, as multiple risks still lie on the road to project restart.Editor/Min Jing