(Commonwealth_Europe) Nexans, the distinguished French manufacturer tasked with producing the power cable to establish a crucial interconnection between Cyprus, Crete, and the wider European grid, has recently provided key assurances to Cyprus’s Energy Minister, George Papanastasiou. During a significant meeting in Nicosia, Nexans representatives detailed the current status of their manufacturing operations in Norway and Japan, and provided an overview of the upcoming phases of this pivotal project.
At the heart of the discussions was the €1.4 billion contract, which Nexans confirmed would not require substantial upward revision. The company representatives conveyed that current financial and operational data indicate stability, alleviating concerns that had arisen regarding potential cost escalations. Given the scale and complexity of the undertaking, which aims to enhance energy security and facilitate economic growth in the region, this clarity is particularly important in the context of the project’s financing and overall budget expectations.
Nexans reassured Minister Papanastasiou that the project timeline remains intact. The representatives explicitly dismissed rumors circulating in Nicosia that suggested the company’s visit was meant to announce significant delays in the cable installation process. Instead, they maintained that the regulatory timeline, which targets project completion by late 2029, is still achievable, reflecting the company’s commitment to meeting its contractual obligations and adhering to established schedules.
An integral part of the meeting involved discussions surrounding the seabed surveys currently underway in the maritime areas off Crete and Cyprus. Nexans officials reported that two vessels are conducting these crucial surveys—one operating in the territorial waters of Cyprus and the other in those of Crete. They emphasized that no issues have been encountered thus far, and the surveys are expected to extend into international waters shortly. This proactive approach to seabed assessment is essential for ensuring the integrity and safety of the cable installation process.
The Nexans representatives clarified that these additional surveys aim to confirm existing data in certain areas, addressing concerns about the necessity for new seabed measurements following earlier surveys conducted by EuroAsia. This precautionary measure aims to identify any significant changes in the seabed that might impact the installation process. Crucially, they assured stakeholders that these new surveys would not alter the project’s cross-border cost allocation, thus maintaining financial transparency and accountability.
In addition to the discussions on the interconnector project, Minister Papanastasiou provided insights to the parliamentary Finance Committee regarding the Republic of Cyprus’s potential stake in the Great Sea Interconnector project. He stated that an American firm is currently undertaking a due diligence study and expects to make a decision on this matter by late November. This study is anticipated to be finalized within the next two to three weeks, which will provide a clearer framework for investment decisions.
The energy sector in Cyprus is also awaiting a critical decision from the European Investment Bank (EIB) regarding a potential €500 million loan for the interconnection project. The Energy Ministry has already submitted IPTO’s cost-benefit analysis, subject to an independent evaluation. The outcome of this evaluation will play a significant role in determining the viability and sustainability of the project, influencing future investments and strategic partnerships.
Furthermore, Minister Papanastasiou addressed developments concerning the Prometheus floating storage and regasification unit (FSRU). He reported that primarily bureaucratic procedures remain before the vessel can commence its journey to a European port. ETYFA, the Cypriot company involved in the project, and its partners are actively preparing the vessel and its associated documentation for the official handover from CPP to the Cypriot entity. The successful transfer of this vessel is a critical component of Cyprus’s energy strategy, aimed at enhancing the island’s capacity to manage and distribute natural gas more effectively.
Moreover, the Minister noted that tender processes are currently underway for the completion of onshore unit and jetty works at the Vasilikos terminal. This infrastructure development is vital for supporting the operational capabilities of FSRU and ensuring that it can fulfill its intended role in the energy supply chain. He emphasized the importance of certifying ETYFA’s vessel as an FSRU rather than merely allowing it to remain anchored, highlighting the necessity for proper regulatory compliance and operational readiness.
The collaborative efforts between Nexans, the Cypriot government, and various stakeholders represent a significant advancement in enhancing Cyprus’s energy infrastructure and its integration into the European energy market. As the project progresses, it promises to provide a more robust energy framework that will not only strengthen Cyprus’s energy security but also foster regional cooperation and economic development. The ongoing communication and transparency among all parties involved are crucial for the successful realization of these ambitious energy interconnections, which are envisioned to play a vital role in meeting the energy demands of the future.
