Chinese-led consortium pulls out of contract to build Cyprus' first natural gas import terminal
A Chinese-led consortium has pulled out of its contract with Cyprus to build the island nation’s first natural gas import terminal over what it says was the Cypriot government’s failure to pay what it owed for work completed this year
NICOSIA, Cyprus — A Chinese-led consortium on Thursday pulled out of its contract with Cyprus to build the island nation’s first natural gas import terminal over what it says was the Cypriot government’s failure to pay what it owed for work completed this year.
The CPP-Metron Consortium said in a statement that the Cypriot government failed to live up to its commitments to pay up, despite promises made during a March meeting chaired by President Nikos Christodoulides.
“No contractor can be expected to work indefinitely on credit,” the consortium said. “That was not the deal CMC signed up to.”
The Cyprus government has not yet commented on the development.
Work on the 289 million euro ($319 million) terminal on the island’s southern coast began in July 2020 and was scheduled to be completed two years later.
The European Union had pitched in a 101 million euro ($110 million) grant.
Billed as Cyprus’ costliest energy project, it was the crude-dependent island’s first important step to transitioning to cleaner, cheaper natural gas for energy generation. The government had said the terminal would cut power generation costs by 15%-25% and reduce Cyprus’ carbon footprint by 30%.
Cypriot officials also said it would allow for future use of natural gas from fields discovered in waters off Cyprus. ExxonMobil, Chevron, Italy’s Eni and French Total are all licensed to drill for oil and gas off Cyprus’ southern coastline.
The terminal features a tanker ship built in Singapore and refitted to convert
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