Klaipėdos Nafta has submitted a tender for the design, construction and operation of the Cyprus LNG import terminal.
If successful, the company, which is partnering with a consortium of subcontractors, will provide long-term operation and maintenance services for the terminal.
The facility will include a floating storage and regasification unit, a jetty for mooring the FSRU, a jetty borne gas pipeline and related infrastructure to secure supply of natural gas to the largest Vasilikos Power Plant in Cyprus. The project has been granted EU support accounting for more than €100 million. The total project budget is estimated at around €500 million.
Together with two other European subcontractors, KN is acting as major subcontractors to heavily support and contribute to the strength of the consortium consisting of Samsung C&T, Posco E&C, Mitsui O.S.K Lines and Osaka Gas. Consortium parties have vast experience in the design and development of LNG infrastructure, operate one of the largest LNG carrier fleets worldwide and supply FSRUs to the global market as well as operate numerous LNG terminals. If successful, KN will team up with Mitsui O.S.K Lines and Osaka Gas to operate and maintain the floating terminal for a period of up to 20 years.
Tadas Matulionis, KN's LNG business development director, says: 'KN possesses the most relevant experience of delivering and operating a very similar LNG import terminal in Klaipėda. Within the EU, Klaipėda LNG terminal is the most recent FSRU project, meeting high quality and efficiency standards. If selected, KN would become the largest operator of floating LNG terminals in Europe, offering further benefits of operational excellence to our clients.'
The winners of the tender will be selected later in 2019, with the terminal expected to start operations in 2021.
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