Filenews 19 March 2024
The Natural Gas Public Company (DEFA) is fighting against time in order to meet the timetable of the end of 2024 for the completion of the construction works for the LNG terminal, so that the entire European grant of €101 million will be received. through the Connecting Europe Facility.
According to DEFA, this amount, based on a decision of the Council of Ministers, will be used for DEFA's participation in the share capital of the Natural Gas Infrastructure Company (ETYFA). €40.5 million have already been recognized. in 2022, while in 2023 an amount of €32.9 million was recognized, with the remaining amount amounting to €28.9 million.
As stated in DEFA's note, in order to receive the remaining grant, two conditions must be met. The recognized expenses for the construction of the terminal amounted to €253.18 million. at the end of 2023 and the project to be completed and the relevant certificate issued by the end of 2024.
Speaking before the parliamentary Trade Committee, DEFA's Director General, Marios Menelaou, said that the implementation rate of the project is at 80%, with the liquefaction rate of the floating gas reliquefaction terminal (FSRU) at 97%, while onshore infrastructure is at 50%. He also said that recognized expenses until the end of 2023 amounted to €249.6 million, resulting in the maximum amount of sponsorship that can be absorbed amounting to €99.8 million.
As Mr. Menelaou recalled, there is already a delay due to the suspension of construction works by the contractor, who will resume work after the company's meeting with the Minister of Energy.
"We do not yet have an update whether the contractor will send a revised schedule, I understand that it is expected to send a revised schedule. The Minister considers that it is feasible to complete the project at the end of 2024," Menelaou said.
Saying that DEFA will examine the new timetable and whether it is realistic, Menelaou added that "if the timetable is extended beyond 2024 then decisions will have to be taken at a political level."
He also noted that if the implementation rate of the project is at 80% at the end of the year, then 20% of the remaining grant will be lost.
For his part, DEFA's head of finance, Nicholas Valanidis, said that the project has already received two extensions from the European Commission, with the last one ending at the end of 2024. "There will be no further relaxation," he said, adding that an "allusion" had been made to the Commission.
Commission President Kyriakos Hatzigiannis estimated that the project will not be completed at the end of 2024.
"There is no possibility that the project will be completed in 2024. There is not the slightest indication that by the end of the year the terminal project will be completed," he said, adding that the project had received several extensions.
"And if this extension is not consulted in a responsible way with our cards open, surely the European Commission will come and make those cuts," he said, adding that he was not so sure whether the Commission would make a proportionate cut "or whether the entire amount of the grant would be jeopardized."
Moreover, DISY MP Nikos Sykas, speaking before the Committee, said that DEFA will be liable in case of loss of sponsorship.
CNA
