China Pulls out of Cyprus' First LNG Import Terminal Under Cash Crunch

Cyprus News

China Pulls out of Cyprus' First LNG Import Terminal Under Cash Crunch
Natural GasLNGGas Imports
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China-based CPP-Metron Consortium has pulled out of a contract with the government of Cyprus for the construction of what was to be the island's first natural gas import terminal,',

China -based CPP-Metron Consortium has pulled out of a contract with the government of Cyprus for the construction of what was to be the island’s first natural gas import terminal, claiming non-payment by the government, the Associated Press reported on Thursday. According to the consortium, the government has failed to honor its commitments despite promising to do so in a March meeting chaired by President Nikos Christodoulides.

Speaking on condition of anonymity to AP, the official claimed that CPP-Metron underbid competitors to win the contract but soon found itself underwater due to the COVID-19 pandemic and Russia’s 2022 invasion of Ukraine. The consortium’s parent company was unable to finance the cash shortfall, forcing two key project subcontractors to leave, bringing work to a standstill. According to the report, the consortium’s parent company refused to come to its rescue with a cash infusion.

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