Construction on the LNG import terminal, which is being taken up by a Chinese-led consortium, is likely to be wrapped up in 2022
Cypriot President Nicos Anastasiades has laid the foundation stone for the €289m LNG import terminal at Vassiliko Port being developed by the Natural Gas Infrastructure Company of Cyprus (ETYFA).
Touted to be the largest energy project in Cyprus, the natural gas import terminal will have an LNG floating storage and regasification unit (FSRU) and related infrastructure.
The midstream project will also include a jetty, a pipeline, mooring facilities along with other onshore and offshore infrastructure.
Construction on the LNG import terminal is likely to be wrapped up in 2022, reported Cyprus Mail. The liquid natural gas (LNG), which is imported and stored in the terminal, will be reconverted into gas and supplied to power plants.
The Vasiliko LNG import terminal will enable Cyprus to bring natural gas to the country for the first time. As a result, the country will be reducing its dependence on oil and petroleum products imported from other parts of the world, while transitioning to cleaner fuels.
Anastasiades has been quoted by the publication to have said: “It is a project which places Cyprus in the orbit of a new energy era, opening up robust prospects both for economic growth as well as for the broader prosperity of our country and its people.”
Vasiliko LNG import terminal is supported by EBRD and others
In June 2020, the European Bank for Reconstruction and Development (EBRD) approved a loan of €80m to ETYFA for developing the LNG import terminal. The financing from EBRD is for a duration of 20 years.
ETYFA is a special purpose vehicle, which is jointly owned by Natural Gas Public Company of Cyprus (DEFA) and the Electricity Authority of Cyprus (EAC).
Apart from the EBRD funding, the special purpose vehicle had secured €150m financing from the European Investment Bank (EIB).
ETYFA had also secured a subsidy of €101m from the European Commission, through Connecting Europe Facility (CEF) and €43m from the participation of EACC in its shareholding structure.
The construction contract for the Vasiliko LNG terminal was given to an international consortium led by China Petroleum Pipeline Engineering (CPPEC). Other firms involved in the consortium are Wilhelmsen Ship Management, Hudong-Zhonghua Shipbuilding, Aktor, and Metron.