Cyprus weighs alternatives to Vasiliko LNG import project

Debate over the island's gas supply strategy intensifies as officials question whether the current import terminal remains the most economic option.

By Handelsavisen Newsroom · Automated 2026-07-12 07:26 UTC · 1 min read

The strategic debate over Cyprus' natural gas supply infrastructure has shifted from necessity to economics, with policymakers questioning whether the planned Vasiliko LNG import terminal remains the optimal solution.

A recent analysis published in the Cyprus Mail argues that the key issue is no longer whether the island needs natural gas, but whether the current project offers the best value compared to emerging alternatives.

This scrutiny comes at a pivotal moment for the Eastern Mediterranean energy sector.

ExxonMobil and QatarEnergy recently declared two natural gas fields within Cyprus' exclusive economic zone as commercially viable, targeting production start by 2033.

The designation of these fields as "marketable" has reignited discussions about domestic supply potential versus reliance on imported liquefied natural gas.

The Vasiliko project, designed to import LNG, faces increasing pressure to justify its costs against the backdrop of potential local production.