Cyfield and China Harbour in talks for Cyprus LNG terminal

Six companies or joint ventures have expressed interest in taking over the project, according to Phileleftheros, including China Harbour, Italy’s Saipem, Greece’s Terna, Avax and Archirodon, and Norway’s ECOnnect Energy. Energy Minister Michael Damianos said the final count would be confirmed on Monday, after state-owned gas infrastructure company Etyfa reviews the initial submissions and decides who advances to the next round.

Etyfa is being advised by Technip Energies as it seeks a replacement after terminating its contract with the CPP-Metron consortium last year. That group, made up of China Petroleum Pipeline Engineering and Greece’s Metron Energy Applications, accused Etyfa of bullying and said it had gone for years without proper or timely payments.

The restart effort comes with legal and political baggage. The floating storage unit Prometheus, meant to serve the terminal, is still in Malaysia without certification, while the European Commission has demanded repayment of almost €69 million in grants over alleged irregularities in the tender process and a later funding agreement. The European Public Prosecutor’s Office is also investigating possible procurement fraud, misappropriation of EU funds and corruption.

For investors and contractors, the outcome will determine whether one of Cyprus’s most important energy projects becomes an infrastructure recovery story or another delayed asset weighed down by disputes, financing questions and regulatory scrutiny. The next catalyst is Monday’s confirmation of bidders and Etyfa’s shortlist, which will show whether the project is attracting enough credible international backing to finally reach completion.