How ETYFA succeeded releasing ‘Prometheus,’ opening the way for the arrival of natural gas in Cyprus

Intensive and persistent consultations and negotiations between Cyprus’ Natural Gas Infrastructure Company (ETYFA) as China’s CMC consortium have ‘unblocked; the procedures relating to the "Prometheus" floating natural gas gasification unit, which, based on the agreement reached, will be delivered to the Cypriot side within 60 days.

This development is characterised as very important, both by ETYFA and by the Ministry of Energy, which are now moving forward with revised plans, in order to complete the natural gas terminal in Vasilikos by the end of 2025 and then begin the pipeline of gasified natural gas for combustion in conventional power generation.

At the same time, ETYFA and the Ministry of Energy are examining various options, both for the certification of the ‘Prometheus’ as a floating natural gas gasification unit and for its possible utilisation for a fee until the completion of the terminal in Vassiliko.

The deal for ‘Prometheus’

As far as the agreement for 'Prometheus' is concerned, it is worth mentioning that the agreement reached is part of the overall financial dispute that currently exists between the Chinese consortium and ETYFA.

According to sources, ETYFA has concentrated its efforts on reaching an agreement in relation to ‘Prometheus’, due to the fact that it is considered the most serious part of this financial dispute, corresponding to 75% of the overall project and with a value approaching €200 million.

Therefore, ETYFA together with the Chinese consortium had entered into a consultation, which lasted for several months and it seems that as part of these disputes, a different arrangement was chosen for the ‘Prometheus’.

It is noted that, based on the same sources, the said agreement includes certain clauses and its implementation should be carried out within 60 days, starting from last week.

However, it is also worth mentioning that during these 60 days, personnel should be placed on board, to be trained to be able to transport the ‘Prometheus’ to its new destination, which will be chosen by the ETYFA.

It is noted that before arriving in Cyprus, the ‘Prometheus’ will have to call at a port to be certified, since it is expected that the ship will receive certification for one trip only, which will be without a cargo of natural gas.

After sailing from Shanghai, the ‘Prometheus’ will sail to a specific destination, where it will be certified as a floating gasification unit.

It is recalled that based on the contract that has since been terminated, ‘Prometheus’ had to obtain two certifications: One for the transport of natural gas for multiple voyages and one for a floating gasification unit.

In this case, however, and because the ‘Prometheus’ is anticipated to enter a specific jetty, the one under construction in Vassiliko, it should be certified primarily as a floating gasification unit.

Where the ship will dock

However, due to the fact that the works at Vasilikos have not been completed, ETYFA in consultation with the Government is considering various options as to where the ship will anchor.

Among the options being considered is for the ‘Prometheus’ to anchor off Vasilikos or go to a natural gas receiving terminal to be certified in parallel and return to the berth until work on the jetty and onshore part of Vasilikos is completed.

However, the ideal scenario for ETYFA and the state is for the ‘Prometheus’ to be transported to a natural gas receiving terminal, the necessary checks carried out and the necessary certification obtained.

At the same time and because there is an increased demand for such ships, especially in the winter in the northern hemisphere, ETYFA and the Government are thinking of allowing the vessel to stay at the terminal that will be chosen and operating there for a fee.

In order to do something like this, however, there should be an arrangement with the European Commission, which is financing the project as a matter of common interest.

The land infrastructure and the wharf

Regarding the Vasilikos terminal, at the moment ETYFA and the Government are moving forward with their plans independently of the ongoing investigation by the European Public Prosecutor's Office.

It is recalled that the investigation in question concerns the use of European funds and the awarding of the specific tender, the Ministries of Finance and Energy have taken specific actions on the part of the European Commission, indicating that the terminal is on its way to completion, so that the European funds are not lost.

However, whether the European funds will remain in p;ace depends on what the European Public Prosecutor's Office decides.

In relation to the works for the terminal (including land infrastructure and wharf), it is worth mentioning that ETYFA is in the process of selecting a suitable consultant, who will prepare the bids for the completion of the unfinished works at Vasilikos.

According to information, the process in question is expected to be completed within the next two weeks and immediately after that the drawing up of the bids will begin.

Based on the plans, however, a realistic scenario for the completion of the terminal, provided that everything goes well with the bids and there are no reactions or objections, is for this to become possible by the end of 2025.

It is pointed out that the completion of the works at Vasilikos does not in any case imply the arrival of natural gas, with the procedures for this running in parallel with the procedures for the completion of the terminal.

In particular, Cyprus’ Natural Gas Public Company is in the process of expression of interest and after the completion of the evaluation of this process, will ask for tenders for natural gas supply through ETYFA's infrastructure.

At the same time, the Ministry of Energy is evaluating another idea for the liberalisation of the natural gas market, so that private individuals can also bring natural gas to Cyprus, gasify it through ETYFA's infrastructure, pay the gasification fee and then channel gasified natural gas for combustion through conventional power generation.

(Source: InBusinessNews)