**Natural Gas Needed by 2030 to Avoid Electricity Supply Problems, Minister Warns**
Cyprus is facing potential electricity supply challenges by the year 2030 unless natural gas is integrated into its energy infrastructure, according to Energy Minister Michael Damianos. Speaking at a session of the House energy committee on Tuesday, Damianos emphasized the urgency of completing the long-delayed Vasiliko liquefied natural gas (LNG) terminal, which he described as the only viable solution to the country's energy needs.
Damianos stated, “The Vasiliko project must be completed before 2030 – and it certainly will be completed before 2030.” He expressed concerns that exploring alternative interim solutions could lead to longer delays due to the complexities of public procurement processes. These processes would involve creating new tender specifications, conducting bidding procedures, and potentially facing legal challenges, all of which could extend the timeline for securing an alternative energy source.
The energy minister highlighted the critical nature of the Vasiliko project, noting that it is not just a governmental priority but also his personal focus within the ministry. He pointed out that LNG is a more cost-effective option compared to diesel, making it an essential component of Cyprus’s energy strategy. “Vasiliko and renewables are connected; they are the two main things we need,” he remarked, underscoring the importance of integrating natural gas with renewable energy sources.
A technical assessment conducted by the engineering firm Technip, which was received by the government at the end of 2025, indicated that the Vasiliko project remains incomplete. While the exact percentage of completion—whether 40% or 60%—is a matter of technical detail, Damianos reiterated that the completion of this project is the only real solution to the anticipated energy crisis.
In terms of the project timeline, Damianos indicated that the government expects to finalize tender documents by the end of July. Furthermore, he announced that a new board of directors has been appointed at the Natural Gas Public Company (Defa), which will enable the Natural Gas Infrastructure Company (Etyfa) to advance the tender process. The government is aiming to award the contract by the end of 2026 or during the first quarter of 2027. Damianos expressed optimism that the process would proceed without significant delays from legal challenges, allowing construction to resume as soon as possible.
The urgency of the Vasiliko LNG terminal project comes amid growing concerns over Cyprus's reliance on traditional energy sources. As the country seeks to diversify its energy portfolio and enhance energy security, the successful implementation of the Vasiliko project is seen as a critical step toward achieving these goals.
As the deadline approaches, the government is under pressure to ensure that the necessary infrastructure is in place to meet the energy demands of the future. The completion of the Vasiliko terminal is not only a matter of energy supply but also a key factor in stabilizing energy prices and reducing dependence on imported fuels.
In conclusion, the Energy Minister's statements reflect a clear commitment to advancing the Vasiliko LNG terminal project as a priority for the government. With the clock ticking toward 2030, the successful realization of this project will be crucial in addressing the anticipated electricity supply problems and securing a more sustainable energy future for Cyprus.