NICOSIA – An LNG (Liquified Natural Gas) terminal in Vasilikos should be constructed by the end of 2024 as part of the European Union’s Projects of Common Interest (PCI) scheme, with €101 million ($109.32 million) in funding, according to Energy Minister George Papanastasiou.

Construction was halted in late January following an appeal to a court of arbitration by the Chinese-led consortium CPP Metron, but it resumed after Papanastasiou spoke with company officials to get the project moving again.

He stated that utilizing LNG as an energy source will dramatically reduce the costs of electricity generation compared to other sources, although Cyprus has the potential for more solar power given its annual sunshine.

The government is awaiting decisions from the Italy-based ENI-led consortium about the Cronos gas field in block 6 of Cyprus’ Exclusive Economic Zone (EEZ), parts of which are not recognized by Turkey, which is also drilling for energy off the island.

The field has estimated reserves of between 2 and 3 trillion cubic feet, and appraisal drilling has shown its potential for lucrative development. Cyprus has licensed foreign companies to search for supplies in the sea.