Great Sea Interconnector Delayed, But Nexans Holds Firm on Finances

PARIS, FRANCE – January 06, 2026 – Global cable manufacturer Nexans confirmed today that the delivery date for the critical Great Sea Interconnector (GSI) project will be delayed, citing the need for a rescheduling of activities with its customer. Despite the setback for the major energy infrastructure project, the company moved swiftly to reassure investors, stating that the delay will not affect its 2028 financial guidance, attributing its resilience to a large project backlog and proactive mitigation strategies.

The announcement casts a spotlight on the complex challenges facing large-scale energy transition projects, even as the companies building them develop sophisticated strategies to insulate themselves from turbulence. The GSI, a subsea cable intended to link the electricity grids of Greece, Cyprus, and Israel, is a designated EU 'Project of Common Interest' (PCI) designed to end Cyprus's energy isolation and bolster regional energy security.

In a statement, Nexans affirmed it is executing the project in line with milestones defined since 2023 but is now working with its customer to “evaluate the best available options for a revised execution schedule.”

The Anatomy of a Delay

While Nexans' press release referred broadly to “external developments,” the project's progress has been hampered by a confluence of financial, political, and regulatory hurdles. The decision to reschedule is the culmination of months of friction between the project's key stakeholders, primarily Greece and Cyprus.

Financial disagreements have been a major sticking point. The project's estimated cost has ballooned from an initial €1.2 billion to €1.9 billion, raising concerns in Cyprus about the potential burden on its consumers. One official involved in the discussions questioned the project's ultimate benefit, noting that “No one knows how much it will cost consumers and when the project will be completed.” This hesitation has led to a deadlock over the cost-sharing and payment structure, with Greece's Independent Power Transmission Operator (IPTO), the project promoter, reportedly suspending payments to Nexans amid the dispute.

Adding to the financial strain, energy regulators in Greece and Cyprus have struggled to agree on a revenue recovery framework, a critical component for ensuring the project's long-term financial viability. The situation prompted the governments of Greece and Cyprus to jointly “freeze” the project late last year, commissioning a new feasibility study to update its technical and economic data. This reassessment alone is expected to cause a significant delay, with some estimates suggesting a new study could not be completed before mid-2026.

Geopolitical Currents and Regional Impact

The project's troubles extend beyond financial spreadsheets into the contentious waters of the Eastern Mediterranean. Geopolitical tensions have actively disrupted progress, most notably when Turkish naval vessels reportedly blocked survey ships in the summer of 2024, asserting that the project's route infringes on its maritime claims. This has forced the Greek government to seek diplomatic solutions to ensure survey work can proceed, adding another layer of complexity and uncertainty.

The delays have drawn the attention of the European Commission, which has allocated €657 million in funding for the GSI. EU officials have been actively mediating between Athens and Nicosia, pushing for a resolution and demanding concrete deadlines. The Commission has publicly stated that its own analysis confirmed the project's benefits outweigh its costs and that a new study is unnecessary, raising the stakes and the potential risk that Brussels could demand its investment back if the project ultimately fails.

A prolonged delay or cancellation of the GSI would be a significant blow to the region's energy ambitions. For Cyprus, the sole EU member state with an isolated grid, the interconnector represents a lifeline to the continental European network, promising greater energy security and stability. For the broader region, it is a key component of a strategy to integrate renewable energy sources and create a more resilient, interconnected power market.

Nexans' Strategy of Resilience

Against this backdrop of turmoil, Nexans has projected an image of stability and control. The company's confidence stems from a two-pronged strategy: a robust financial position on the project itself and a diversified, high-value order book that can absorb shocks.

Crucially, Nexans has already received substantial payments for the fabrication of the high-voltage cable, reportedly totaling around €250 million. These advance payments have effectively de-risked the project from the company's perspective, providing a significant financial cushion against the ongoing delays and contractual disputes. This allows the company to remain committed to the project without exposing its balance sheet to undue risk.

CEO Julien Hueber emphasized this disciplined approach. “The GSI project remains underway and we are fully committed to supporting our customer in bringing this critical infrastructure to completion,” he stated. “We are managing this situation with strong discipline in our execution. The mitigating steps we are taking starting 2026 in response to external developments allow us to stay firmly on track with our financial trajectory as well as with our 2028 guidance.”

This confidence is further bolstered by what the company describes as a “large backlog.” This pipeline of other major projects allows Nexans to reallocate resources and production capacity if needed, ensuring that its factories remain active and revenue streams are maintained. The company has pointed to the strong long-term growth prospects of its Power & Transmission business as a core driver of value, independent of any single project's timeline.

This highlights a growing trend among major industrial players in the energy transition space: building business models resilient enough to withstand the inherent volatility of megaprojects that span multiple years, jurisdictions, and political cycles. By securing significant upfront payments and maintaining a deep and diverse order book, Nexans can navigate project-specific crises while keeping its long-term strategic and financial goals intact. The company will provide its formal 2026 guidance with its full-year 2025 results on February 19, 2026, which will be closely watched by the market for further signs of this resilience.