The Minister of Energy, Commerce, and Industry, George Papanastasiou, expressed surprise on Friday morning over the announcement released yesterday by the consortium responsible for constructing the natural gas import terminal in Vasiliko, Cyprus. Speaking to reporters on the sidelines of a conference for World Consumer Day hosted by the Consumer Protection Service, ahead of a meeting later today with the Chinese consortium CPP which manages the project, Papanastasiou said that he would express at the meeting dissatisfaction with the consortium’s operations regarding the Vasiliko project.
However, he expressed hope that the dialogue would be consensual, with both parties understanding their strengths and weaknesses.
The Minister emphasised the significance of the Vasiliko terminal for the Republic of Cyprus.
“It is the way natural gas will be imported, it is the way the cost of conventional electricity generation will be reduced. So, it is very important for the terminal to be completed,” he said.
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d, he noted, there are delays and extensions from the consortium. He pointed out that the terminal was initially supposed to be completed by September 2022 but received extensions until July 2023, then October 2023, with the proposed timeline now being for July 2024. At present, works were halted at the Vasiliko terminal, something that ‘is not favoured by the Republic of Cyprus as it significantly impacts electricity prices’, stressed the Minister.
Papanastasiou also said he was surprised at the consortium’s announcement issued on Thursday, as it made references to anything but the infrastructure itself. He emphasised that the essence for Cyprus was to indicate to the consortium that it expects them to honor the contract they signed.
Asked whether any ultimatums would be issued to the company to comply before Cyprus seeks other solutions, the Minister stated that it was not the logic of the Ministry of Energy to issue ultimatums but rather through dialogue, expecting both parties to understand their streng
ths and weaknesses and express them.
“Through this dialogue, I expect the two parties to stipulate their position. I hope it will be a positive one, but if it is not positive, Cyprus will dare to make bold decisions,” he added.
He further emphasised that if the consortium encounters any obstacles, for whatever reason, it should openly acknowledge it. This, he stressed, was crucial to prevent the Republic of Cyprus from being hostage in the prolonged situation for years to come.
He added that the contract was awarded in 2019 with the deadline for the terminal’s delivery on September 2022, yet today “we are discussing the problems with delivering the terminal”.
National Energy Strategy aimed at reducing electricity costs
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The Minister also assured of the existence of a national energy strategy geared towards reducing electricity costs, in response to recent discussions among Members of Parliament at the House of Representatives’ plenary session.
“I can honestly tell you that th
ere is a national energy strategy aimed at reducing electricity costs for households, businesses, and ultimately for the Cypriot economy,” he said.
He further explained that the current lack of competitiveness in the Cypriot economy, whether in services or products, was largely due to the high cost of electrical energy.
Papanastasiou highlighted that the strategy sets goals and methods, noting that the tools necessary to start providing solutions and reaching the target were currently lacking. He pointed out that one such tool is the natural gas terminal in Vasiliko, which should have been completed.
When asked about issues related to infrastructure, storage, and Renewable Energy Sources (RES), Papanastasiou explained that electricity generation, would be followed by transmission and distribution. He emphasised the need to develop networks and make them smart, working towards the integration of the next steps. He added that efforts were being made to enable these networks to store electricity from sources
beyond conventional electricity generation.
Government and EU officials address consumer challenges
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The Energy Minister pointed out the government’s commitment to finding solutions and targeted support measures to address consumer challenges in his speech during an Energy Ministry conference marking the “World Consumer Day.”
‘Our fundamental goal and priority is to introduce affordable energy to significantly assist businesses and consumers,” said Papanastasiou.
The Minister of Education Athena Michailidou, who also addressed the event, stressed the importance of instilling responsible consumption awareness and culture from an early age, while Myrto Zamparta, Head of the European Commission Representation to Cyprus, highlighted the EU’s approach to addressing new consumer challenges.
Source: Cyprus News Agency