Emerging alternatives in megaproject management

a case study of the pioneering LNG energy project in Cyprus


  • Andrey AFANASIEV University of Limassol, Cyprus
  • Savvas CONSTANTINOU University of Limassol, Cyprus
  • Stelios GEORGIOU University of Limassol, Cyprus
  • Olga KANDINSKAIA University of Limassol, Cyprus




project management, emerging alternatives, megaprojects, LNG energy project, value creation, risk assessment, ESG


Aim: The aim of this paper is to contribute to the project management studies by systematization, generalization, and structurization of information about an energy megaproject in Cyprus, as well as to provide practical insights and guidance on how megaprojects can be started and managed in other locations.

Design / Research methods: By its research design, this paper is a case study analysis. The major focus of the case study is the decision-making process of the LNG energy megaproject in Cyprus.

Conclusions/findings: Even positive emerging alternatives, like the discovery of newly natural resources, can delay a megaproject instead of speeding up it due to impact on the decision-making process and reassessment of the value creation.

Originality/value of the article: The LNG energy megaproject in Cyprus provides a unique example of an emerging strategic alternative which requires a reassessment of the initial approach and its comparison in terms of value creation with the newly appeared opportunity.

Keywords: project management, emerging alternatives, megaprojects, LNG energy project, value creation, risk assessment, ESG

JEL: G31, H43, P28.



American Public Gas Association (2021), A brief history of natural gas, April 18, https://www.apga.org/apgamainsite/aboutus/facts/history-of-natural-gas [16.03.2024].

AGL Energy Company (2017), Fact Sheet floating storage and regassification units, AGL.com.au, October 1, https://www.agl.com.au/-/media/aglmedia/documents/about-agl/how-we-source-energy/crib-point/fsru_factsheet_a4_v2.pdf?la=en&hash=DDC9AFB2F8757001EBCAEBDE8387420D [16.03.2024].

Aisyah R. (2017), LNG Regasification Vessel Requirement based on DNV Classification Notes No. 16.3, Chemical Engineering Portal, , January 30, https://missrifka.com/energy/lng/lng-regasification-vessel-requirement.html [16.03.2024].

Andreou M. (2019), Cyprus LNG import project, a milestone for the Cyprus, Institute of Energy of South East Europe, https://www.iene.eu/articlefiles/andreou%20cyprus%2019.pdf [16.03.2024].

Aristeidou O. (2020), EBRD supports decarbonisation of energy sector in Cyprus, European Bank for Reconstruction and Development, July 31, https://www.ebrd.com/news/2020/ebrd-supports-decarbonisation-of-energy-sector-in-cyprus.html [16.03.2024].

Barnes E.J., Hooson S., Ramarao B., Nguyen T. (2017), Review of LNG terminal options shows advantages of FSU facilities, Offshore, September 14, https://www.offshore-mag.com/pipelines/article/16755840/review-of-lng-terminal-options-shows-advantages-of-fsu-facilities#:~:text=The%20FSU%2FOffshore%20Terminal%20configuration%20includes%20a%20marine%20berth%20facility,moored%20at%20the%20marine%20berth [16.03.2024].

Baskoro D.H., Artana K.B., Dinariyana A.A.B (2019), Fire risk assessment on Floating Storage Regasification Unit, Sustainable Islands Development Initiatives – International Conference 2019. IOP Conf. Series: Earth and Environmental Science 649 (2021), https://iopscience.iop.org/article/10.1088/1755-1315/649/1/012067/meta [16.03.2024].

Brookes N.J., Locatelli G. (2015), Power plants as megaprojects. Using empirics to shape policy, planning, and construction management, “Utilities Policy”, vol. 36, pp. 57–66, https://eprints.whiterose.ac.uk/90267/3/JUP%2015-00036r1%20Final%20V01.pdf [16.03.2024].

Bulte A., Foster W. (2017), An innovative solution for fixed offshore LNG regasification terminals, GTI Energy, April 17, https://www.gti.energy/wp-content/uploads/2018/12/8-7-Augusto_Bulte-LNG17-Paper.pdf [16.03.2024].

CERA (2015), Electricity prices in Cyprus, Cyprus Energy Regulatory Authority, April 1, https://www.cera.org.cy/Templates/00001/data/raek/omilies-parousiaseis/2015/2015_04-parousiasi.pdf [16.03.2024].

COST (2023), The European Cooperation in Science and Technology Association, https://www.cost.eu/actions/TU1003/ [20.07.2023].

CYNERGY (2018), Environmental impact study, CYNERGY, https://docplayer.net/189841781-Cynergy-project-activity-2-cygas-fsru-jetty-vassilikos-cyprus.html [16.03.2024].

Cyprus Mail (2022), Undergrad and postgrad scholarships for energy courses, Cyprus Mail, August 31, https://cyprus-mail.com/2022/08/31/undergrad-and-postgrad-scholarships-for-energy-courses/ [16.03.2024].

Daryanto M.A. (2020), Operational risk assessment of ship to ship transfer in the FSRU Lampung using risk matrix method, Maritime Safety International Conference, IOP Conf. Series: Earth and Environmental Science, 557 (2020) 012035, https://iopscience.iop.org/article/10.1088/1755-1315/557/1/012035/meta [16.03.2024]

DEFA (2021), Natural Gas Public Company, Natural Gas Public Company Scope of Work, August 2, https://defa.com.cy/en / [16.03.2024].

Dimitriou D., Zeimpekis P. (2022), Appraisal modeling for FSRU, “Energies”, vol. 15 no. 3188, https://www.mdpi.com/1996-1073/15/9/3188 [16.03.2024].

Duran M. (2020), Cyprus starts work on first LNG import terminal, Offshore Energy, July 13, https://www.offshore-energy.biz/cyprus-starts-work-on-first-lng-import-terminal/ [16.03.2024].

Eikens M. (2020), Construction of an LNG jetty, Econnect Energy, October 13, https://www.connect-lng.com/articles/construction-of-an-lng-jetty [16.03.2024].

Ellinas C. (2021), Cyprus must increase renewable energy or face fines, Cyprus Mail, February 18, https://cyprus-mail.com/2021/02/18/cyprus-increase-renewable-energy-fines/ [16.03.2024].

European Commission (2021), First Croatian LNG terminal officially inaugurated in Krk island, Innovation And Networks Executive Agency, January 29, https://ec.europa.eu/inea/en/news-events/newsroom/first-croatian-lng-terminal-officially-inaugurated-krk-island [16.03.2024].

European Investment Bank (2023), EIB Investment Survey Country Overview 2022: Cyprus, https://www.eib.org/en/publications/20220266-econ-eibis-2022-cyprus [16.03.2024].

EUROSTAT (2021), Imports of natural gas by Greece in 2021, https://ec.europa.eu/eurostat/cache/infographs/energy_trade/entrade.html?geo=EL&year=2021&language=EN&trade=imp&siec=G3000&filter=all&fuel=gas&unit=TJ_GCV&defaultUnit=TJ_GCV&detail=1&chart= [16.03.2024].

Exxon Mobil (2021), Floating Storage and Regasification Units (FSRUs), ExxonMobil.com, March 20 [16.03.2024].

Fadhil M., Handani D.W., Dinariyana A.A.B. (2020). Risk analysis on modified offloading system of LNG FSRU, Maritime Safety International Conference, IOP Conf. Series: Earth and Environmental Science 557 (2020) 012020, https://iopscience.iop.org/article/10.1088/1755-1315/557/1/012020/meta [16.03.2024].

Financial Mirror (2020), Cyprus one step closer to importing LNG, Financial Mirror, December 22, https://www.financialmirror.com/2020/12/22/cyprus-one-step-closer-to-importing-lng/ [16.03.2024].

Flyvbjerg B. (2014), What you should know about megaprojects and why. An overview, “Project Management Journal”, vol. 45 no. 2, pp. 6–19.

Hellenic Shipping News (2020), Floating Storage Regasification Units, https://www.hellenicshippingnews.com/floating-storage-regasification-units/#:~:text=Whilst%20projects%20vary%20considerably%2C%20onshore,as%2018%20to%2024%20months [16.03.2024].

Henderson J. (2017), The outlook for Floating Storage and Regasification Units (FSRUs), The Oxford Institute for Energy Studies, https://www.oxfordenergy.org/publications/outlook-floating-storage-regasification-units-fsrus/ [16.03.2024].

International Gas Union (2020), 2020 World LNG Report, IGU, Barcelona, https://www.igu.org/resources/2020-world-lng-report/ [16.03.2024].

Kassianides S., Macchietto S. (1995), Computer based training of process plant operators, “Measurement and Control”, vol. 28 no. 10, pp. 298–303, https://journals.sagepub.com/doi/abs/10.1177/002029409502801003?journalCode=maca [16.03.2024].

MarineTraffic. (2021, May 29). MarineTraffic. Retrieved from Marine Traffic Web Site: https://www.marinetraffic.com/en/photos/of/ships/shipid:728695/ships [16.03.2024].

McNamara, C. J. (2021, February 1). Maritime History Notes: Pioneering LNG carriers. Retrieved from https://www.freightwaves.com/news/maritime-history-notes-pioneering-lng-carriers [16.03.2024].

Mishra B. (2018), Know all about FSRU, the Floating Storage Regasification Unit, Seanews UK, November 14, https://seanews.co.uk/shipping/maritime-shipping/know-all-about-fsru-the-floating-storage-regasification-unit/ [16.03.2024].

Natural Gas Infrastructure Company (ETYFA) (2021), LinkedIn ETYFA Profile, https://www.linkedin.com/company/natural-gas-infrastructure-company-etyfa/about/ [16.03.2024].

Norrgård J. (2018). LNG terminals – land-based vs. floating storage and regasification technology, Wärtsilä Corporation, May 14, https://www.wartsila.com/insights/article/lng-terminals-land-based-vs-floating-storage-and-regasification-technology [16.03.2024].

Ochieng E.G. (2016), Revitalising energy capital project development and execution strategies. Lessons from the energy sector, “Production Planning & Control”, vol. 27 no. 4, pp. 237–248.

Papaleonidas C., Androulakis E., Lyridis D.V. (2020), A simulation-based planning tool for Floating Storage and Regasification Units, “Logistics”, vol. 4 no. 4.

Pau F., Langeland A., Nja B.O. (2016), Assessing cultural influences in megaproject practices, “IEEE Engineering Management Review”, vol. 44 no. 2, pp. 56–73, https://ieeexplore.ieee.org/abstract/document/7502388/ [16.03.2024].

Putra I.W.G.K.D.D., Artana K.B., Ariana I.M., Sudiasih L.G.M.P. (2019), A study on conceptual design of mini FSRU as LNG receiving facility, https://iopscience.iop.org/article/10.1088/1757-899X/588/1/012026/pdf [16.03.2024].

Raschke N., Chrysikos G. (2019), Vassilikos Bay, Floating Storage and Regasification Unit, final non-technical summary (NTS), Environmental Resources Management, London, https://www.ebrd.com/what-we-do/project-information/environment-social-info-documents/1395289330357/LNG_Floating_Storage_and_Regasification_Unit_-_Cyprus_NTS.pdf?blobnocache=true [16.03.2024].

Robert Strauss Center (2021), The U.S. Shale Revolution, Strauss Center Corporation, February 13, https://www.strausscenter.org/energy-and-security-project/the-u-s-shale-revolution/ [16.03.2024].

Snyder J. (2020), Floating LNG ratchets up in the Mediterranean, Riviera, April 15, https://www.rivieramm.com/news-content-hub/news-content-hub/floating-lng-ratchets-up-in-the-mediterranean-58961?fbclid=IwAR3ro_oTCDAkr1mf25zHbzHOisGxZHwH9DykDPrKNVhfuMvPF-0t2a_XWbY [16.03.2024].

Songhurst B. (2017), The outlook for Floating Storage and Regasification Units (FSRUs), The Oxford Institute for Energy Studies, https://www.oxfordenergy.org/publications/outlook-floating-storage-regasification-units-fsrus/ [16.03.2024].

Statista (2023), https://www.statista.com/statistics/1235188/cyprus-distribution-of-electricity-production-by-source/ [16.03.2024].

Timera Energy (2018), How FSRUs are impacting LNG market evolution, Timera Energy, July 9, https://timera-energy.com/how-fsrus-are-impacting-lng-market-evolution/ [16.03.2024].

TotalEnergies (2019), New marine fuels. Total’s first LNG bunker vessel launched, TotalEnergies, October 10, https://totalenergies.com/media/news/press-releases/new-marine-fuels-totals-first-lng-bunker-vessel-launched [16.03.2024].

U.S. Energy Information Administration (2021), Natural gas explained, U.S. Energy Information Administration, April 15, https://www.eia.gov/energyexplained/natural-gas/#:~:text=The%20largest%20component%20of%20natural,carbon%20dioxide%20and%20water%20vapor [16.03.2024].

Wankhede A. (2019), What is a Floating Storage Regasification Unit (FSRU)?, Marine Inside, December 13, https://www.marineinsight.com/types-of-ships/what-is-floating-storage-regasification-unit-fsru/ [16.03.2024].

Westerman W., Paays J., Pätäri S. (2014), Value creation with wood-based energy business models, in: Sustainable practices: concepts, methodologies, tools, and applications, vol. 3, chapter 87, pp. 1560–1575, IGI Global. [16.03.2024].

IGI Global, https://www.igi-global.com/chapter/value-creation-with-wood-based-energy-business-models/95012 [16.03.2024].

Yin R.K. (2014), Case study research. Design and methods, 5th ed., Sage, Tousand Oaks, CA, https://www.academia.edu/87937093/Robert_K_Yin_2014_Case_Study_Research_Design_and_Methods [16.03.2024].



2024-03-30 — Updated on 2024-04-15