The European Public Prosecutor (EPPO) is investigating possible abuse of European subsidies in the construction of a natural gas project in Cyprus. At the same time, China has decided to withdraw from financing the project.
This involves an amount of approximately €686 million in EU subsidies, which is now being recovered by the European Commission. The money was intended for the construction of liquefied natural gas (LNG) transfer stations in the Cypriot port of Vasilikos. The suspicion is that the funds have not been used according to the rules and that there may be corruption and mismanagement.
An important additional development is China's decision to withdraw as a financier of the Vasilikos project. China had initially committed to making significant investments. This withdrawal represents a major financial and logistical setback for the project and jeopardizes its progress.
The increased capacity for the transshipment of liquefied natural gas has become especially important after the European Union decided two years ago to almost completely boycott gas imports from Russia due to the Russian war against Ukraine.
In parallel with the European investigation, the authorities in Cyprus have also launched an investigation into possible irregularities in the tendering of the project.
Originally intended to be Cyprus' first liquefied natural gas (LNG) import terminal, the LNG project at the Cypriot port of Vasilikos was intended to play a crucial role in diversifying Europe's energy supply. Transfer stations are also being built at an accelerated pace in ports in other EU countries and temporary installations are already being used on board moored ships.
Several of these types of additional transhipment installations have already been put into use in several EU ports. There are already two ships with such transshipment facilities at the LNG terminal in the northern Dutch port of Eemsmond. The liquid natural gas is pumped at a temperature of -162 degrees. It is then immediately introduced into Gasunie's gas network. The liquid natural gas is imported from the Middle East and America. Germany also has five of these types of floating LNG installations.