The European Investment Bank has approved €150 million in funding for an LNG import terminal in Cyprus, which is being developed by the country’s Natural Gas Infrastructure Company (ETYFA) and the National Gas Public Company (DEFA).
The terminal is planned for Vasilikos Bay, near Limassol, and will include a floating storage and regasification unit (FSRU), a jetty for mooring the FSRU, a jetty-borne gas pipeline and the related infrastructure.
The total estimated cost of the terminal is €289 million. ETYFA has already received a grant of €101 million from the European Union’s Connecting Europe Facility (CEF), while €43 million came from the Cyprus Electric Company as part of an equity participation scheme, for which it received a 30% stake in the company. ETYFA says that the support from the EIB is ‘the necessary trigger’ for building work to begin. It adds that the financing has a duration of 20 years and favourably low interest terms.
‘This is a decision that unquestionably reflects the confidence of the institutions of the European community in both DEFA and ETYFA and recognises the reliability and consistency shown by DEFA at every stage of the project implementation. DEFA systematically laid the important foundations for the achievement of Cyprus’ long-term goal of importing of natural gas,’ says DEFA in a statement.