Nearly four years after its conception, VTT Vasiliko in Cyprus (VTTV) will begin its operations in November 2014.
The facility, which is owned by a subsidiary of VTTI, comprises of 28 tanks and 543,000m³ of storage capacity for white products, available for both commercial and strategic stocks.
At the moment Cyprus keeps its compulsory stocks in Cyprus in Greece and The Netherlands. However, with this storage capacity now available in Cyprus, VTTV says it is a good opportunity for Cyprus to store its compulsory stocks on homeland and at a lower cost.
With several customers lined up and contracts signed the company is already looking ahead to its next growth phase.
Phase two is currently under licensing and would create an additional 13 tanks and an extra capacity of 305,000m³, primarily for fuel oil and crude oil. This is expected to begin next year and be complete by the end of 2016.
When it comes to filling the storage capacity Xenia Economidou, the company’s spokesperson, says it has very little to worry about, because of the terminal’s strategic geography, the deep water marine facilities, the operational flexibility and competitive rates the terminal offers to its users.
‘At the moment much of the oil storage capacity in Cyprus is situated in Larnaca, where the country’s main airport is,’ she explains. ‘However the Republic of Cyprus has asked oil marketers having storage facilities there to relocate so that the town of Larnaca can be developed as a tourist destination. The VTTV terminal can be an option for this business activity also.
‘VTTI, through its subsidiary VTTV, is the first international storage operator to move to the region and offers its customers the most advanced technology available in the oil storage industry.
Our terminal is linked to an offshore marine jetty with four berths that can accommodate ship tankers from 5 to 165,000 DWT.’
The storage terminal is located in the industrial area of Vasiliko. ‘Discussions are ongoing as to whether a major LNG plant will be built in this area,’ Economidou adds. ‘This would create additional synergies on energy products transportation and distribution.’
The terminal’s location will be the first of its kind in the Eastern Mediterranean and its proximity to the Suez Canal, will connect Europe and the Black Sea with markets in the Middle East and Asia.
A substantial number of transshipments take place per year around Cyprus and in 2013 9.6 million tonnes were transshipped – the VTTV marine jetty is an option for these transhipments to take place in a safer environment with the ships moored at the berths of the jetty.