Vitol Tank Terminals International (VTTI) has confirmed work will begin on the construction of its oil storage terminal in Vassiliko, Cyprus, in January 2011.
In early November VTTI signed US-based engineering player Joannou & Paraskevaides to build the terminal.
The first phase of the $128 million (97 million) project will allow for a 340,000m3 of storage for gasoline, diesel, jet fuel and fuel oil. The storage capacity will be expanded to 550,000 m3 during phase two of the project.
With 20 tanks and a maximum draft of 17m, the terminal is expected to establish Cyprus as a major trading hub for oil products upon its completion in 2012.
VTTI currently has a network of 11 terminals in five continents, including a major new terminal in Florida, US, and major terminals in Rotterdam, Amsterdam, Antwerp and Ventspils, Latvia.
The facility is a 50/50 joint venture with maritime corporation MISC Berhad.