The president of Cyprus, Nicos Anastasiades, has officially laid the foundation stone of the country’s new LNG import terminal in Vasilikos Bay, near Limassol, marking the start of construction at the site.
In June 2020, The European Investment Bank (EIB) approved €150 million in funding for the LNG import terminal, which is being developed by the country’s Natural Gas Infrastructure Company (ETYFA) and the National Gas Public Company (DEFA). ETYFA said at the time that the EIB grant was ‘the necessary trigger’ to begin works. The total estimated cost of the terminal is €289 million.
The project will include a floating storage and regasification unit (FSRU), a jetty for mooring the FSRU, a jetty-borne gas pipeline and the related infrastructure, and is expected to be completed by 2022. Construction works will be carried out by an international consortium involving China Petroleum Pipeline Engineering, Hudong-Zhonghua Shipbuilding, Metron and Wilhelmsen Ship Management, which was awarded the contract by ETYFA in December 2019.
According to the Cyprus Mail, President Anastasiades told those gathered for the foundation stone laying ceremony that the project put Cyprus in a new energy era, and would being economic growth and prosperity. He criticised the hold-ups and red tape that have dogged the project since its inception in 2003, but added that he was looking forward to the inauguration. The terminal, which will provide fuel for electricity plants in Cyprus, is expected to reduce the country’s carbon footprint by almost 30% and reduce energy costs by uo to 15%.
The Cypriot government’s LNG supply tender is ongoing. An initial round inviting expressions of interest, which was completed in September 2019, attracted 23 companies.