Cyprus wants to end a state monopoly over the import of natural gas in an attempt to find a quick workaround over serious project delays in getting the commodity to market, several industry sources told Reuters.

Cyprus wants to end a state monopoly over the import of natural gas in an attempt to find a quick workaround over serious project delays in getting the commodity to market, several industry sources told Reuters.

Efforts to introduce natural gas to the local market have been beset with delays for years, with the latest setback a legal wrangle between Cyprus and a Chinese consortium over a half-finished liquefied natural gas (LNG) import terminal.

Cypriot Energy Minister George Papanastasiou has asked regulators to consider abolishing the present protected status of the market and what legal arrangements may be required, the industry sources said.

The move would remove the monopoly of state-appointed DEFA, the Cyprus Natural Gas Company formed in 2008, and cut the cost of electricity to consumers.

“The abolition of this status would effectively allow the EAC to look at other sources, and other solutions for the introduction of natural gas,” EAC Chairman George Petrou told state radio.

The island’s plans to introduce natural gas via a terminal in the Vassilikos area on the southern coast collapsed in disarray earlier this year amid a legal wrangle between the Chinese consortium and the Cypriot state agencies and a pending arbitration process in London.

This week, Cyprus’s Ministry of Energy also sent a “notice of breach” to a Chevron-led consortium over delays in the development of the 3.5 trillion cubic feet Aphrodite field offshore Cyprus.

The consortium, which includes Israel’s NewMed Energy NWMDp.TA and a local unit of Shell responded on Monday that it would present an updated development plan “within days”.

Papanastasiou on Thursday met Egyptian Petroleum Minister Karim Badawi, where discussions focused on enhancing partnerships.

They included talks on “the creation of a reliable energy corridor to Europe and accelerating development of Cyprus’s gas by utilising infrastucture in Egypt”, he wrote in a post on X.

Source: Reuters written by Michele Kambas and edited by Sharon Singleton