NICOSIA, Cyprus

– A crucial decision regarding the financing of an electricity cable connecting Greece, Cyprus, and Israel is anticipated next month, as Cyprus' energy minister announced that a ruling will clarify whether Cypriot consumers will bear the construction costs. The European Union is contributing 657 million euros to the project, but the Greek project operator, IPTO, initially required that these costs be covered by Cypriot taxpayers to attract investors—a condition rejected by the Cypriot energy regulator, CERA. Currently, 40-50 kilometers of the cable has been laid in the Mediterranean as part of the initial phase, which links Crete to Cyprus. Once operational, the cable is expected to reduce energy prices for Cypriot consumers by 30%-40%. The Cypriot government is also set to decide in September on a potential investment of 100 million euros into the project, following a viability assessment. Additionally, plans are underway to establish Cyprus' first natural gas terminal, which aims to utilize imported liquefied natural gas to power its plants, potentially cutting greenhouse gas emissions by 40%-45%. However, the LNG terminal project has faced significant setbacks, including the recent withdrawal of the Chinese-led CPP-Metron consortium due to financial disputes. President Nikos Christodoulides criticized the awarding of the contract, stating the consortium was ill-equipped to complete the project. The government is now focused on finding alternative subcontractors to expedite the terminal's completion, which was originally scheduled for 2022, while also considering chartering a vessel to facilitate natural gas imports amidst ongoing legal issues surrounding the delivery of a necessary ship.