The liquefied natural gas (LNG) import project at Vasiliko will need another €200 million for pending works, the government said on Tuesday.

A finance ministry official summoned to parliament said it has received a request for an extra €200 million in funding, and is looking at different options – whether the funds would come via direct state aid to Defa (Natural Gas Public Company) or via a loan.

It’s understood the estimated amount concerns all components of the LNG project – the land-based facilities and the half-finished jetty at Vasiliko, as well as the floating, storage and regasification unit (Fsru) currently anchored in Malaysia.

For his part, Energy Minister George Papanastasiou reiterated the “ambitious” expectation that the project as a whole could be completed by the end of the year.

Regarding the Fsru vessel Prometheas, the minister confirmed it’s still located in Malaysia. He said two systems – worth about €7 million – still need to be installed on the ship. It would take some time for delivery of the systems.

The vessel itself has cost an overall €200 million, while its current market value is estimated at a far higher value.

On the jetty at Vasiliko, where the Fsru will moor once it arrives in Cyprus, Papanastasiou said this is the component where decisions are moving the fastest. And as far as the land-based facilities go, the government will need to call for new tenders from scratch.

Another complication has to do with the pipeline network that will carry the LNG to the nearby Vasiliko power station. The government had selected a consultant to carry out the design of the distribution network, but a court cancelled the award decision. The consultant’s fee was said to be €15 million.

One new element that came out on Tuesday is that the Fsru vessel may end up staying in Malaysia longer than initially indicated – perhaps even until the infrastructures at Vasiliko are finished.

Papanastasiou revealed this while being grilled by MPs. He was asked about Egypt’s interest in leasing the ship in the interim, before it comes to Cyprus.

At this point, the minister said that because the parts that the ship still needs may take a while to be delivered, it might make more sense for the vessel to remain in Malaysia until it finally makes the voyage to the Mediterranean.

Chairman of the Electricity Authority of Cyprus Giorgos Petrou said the organisation is ready to use natural gas as soon as it’s available.

Lawmakers were not impressed with the latest update on the LNG affair. Disy MP Kyriacos Hadjiyiannis speculated the extra costs would end up being far higher than the €200 million cited.

He also said that estimates offered about the completion of the project by the year’s end were “not serious”. Rather, it might take another three to four years.

In the meantime, he added, consumers get saddled with approximately €10 million a month in greenhouse gas allowances on their electricity bills.

The Greens’ Stavros Papadouris highlighted the state of the jetty at Vasiliko. The lack of maintenance could lead to corrosion.

The LNG project had already faced cost overruns. Initially budgeted at €500 million, the number went up by another €42 million after the former Chinese contractors cited increased costs of items such as steel.

The cost inflation, as well as allegations of violations of procurement rules, had led the European Public Prosecutor’s Office to open an investigation in July last year.

The LNG terminal contract was awarded in 2019 with a 24-month deadline for completion.

The Chinese-led consortium subsequently submitted four delivery timetables – September 2022, July 2023, October 2023 and July 2024.

In July 2024, the Chinese contractor unilaterally pulled the plug, citing insurmountable differences with the Cyprus government and claiming unpaid invoices.