Contractor denies LNG ship had missing parts
The Chinese-led consortium which formerly held the contract to build a liquefied natural gas (LNG) import terminal hit back on Monday at reports that it had delivered a ship with missing parts.
In a statement, CPP-Metron Consortium (CMC) described as “inaccurate” media reports in Cyprus to the effect that the vessel – dubbed Prometheas – was delivered to Cypriot authorities with two missing parts.
Such reports, it said, do not reflect the real state of the vessel at the time of delivery, and directly contradict the certifications received by the ship prior to its delivery to Etyfa – the natural gas infrastructure company, the Cypriot state-run entity that owns the LNG project.
In reality, said CMC, the ship had been repeatedly and thoroughly inspected, including by Etyfa and by independent experts, before being handed over in December 2024.
It also stated that the vessel was officially certified as a liquefied natural gas carrier (LNGC) by Lloyd’s Register as well as by Etyfa.
LNG carriers are built with specialised tanks and containment systems to safely carry LNG at extremely low temperatures.
The consortium went on to say that the LNGC certification issued by Lloyd’s had “confirmed” that all works required for the safe and efficient operation of the ship had been completed, in full compliance with international maritime standards.
In addition, the provisional acceptance certificate (PAC) issued by Etyfa had not found any missing parts during the handover.
A PAC signifies that a project has been completed and handed over to the client, but some minor items or performance verification may still be pending. It essentially marks the end of the construction phase and the beginning of a warranty period.
In parliament last week, officials said the Prometheas – currently moored in Malaysia – is missing two components. The first component is a valve system used in liquefying natural gas, and the second is a unit that generates nitrogen. The cost of both comes to between €8 million and €9 million.
MPs heard that, far from the LNG project being ready by end of 2025 as officials had promised, the new project manager has yet to furnish a timetable for its completion.
The new project manager is a subsidiary of Technip SA, a French company.
The Prometheas is a floating, storage and regasification unit. Once it gets to Cyprus, it would dock at the pier at the LNG terminal located in Vasiliko. But first it would need to get FSRU certification.
The pier itself is half-finished.
Sources familiar with the subject told the Cyprus Mail that CMC was being disingenuous, especially with its choice of language.
They said that whereas the Prometheas was certified as LNGC, this was only for a single voyage – to release the ship from Shanghai so that it could make the trip to Malaysia.
According to the sources, the key issue, which CMC is fudging, is that under the contract with Etyfa the vessel was supposed to be certified as an FSRU – not as an LNG carrier. And a vessel cannot be certified as both.
Prometheas is currently not certified as an FSRU as various components are missing, our sources explained.
They said Etyfa did not certify the vessel, as CMC claims. Only maritime classification outfits – like Lloyd’s – can certify. What had happened, rather, is that Etyfa personnel had inspected the ship.
Another source suggested that, through its public pronouncements, CMC may be angling to avoid giving back the retention bond – thought to be worth around €30 million.
In July 2024, CMC broke the contract with the Cypriot government, citing irreconcilable differences. That left the LNG project half-completed and in limbo. Arbitration proceedings are underway in a London court.
It was back in December 2019 when Cyprus signed the contract with the Chinese-led consortium. There followed four missed delivery timetables – September 2022, July 2023, October 2023 and lastly July 2024.