EIB approves $150 million funding for Cyprus LNG project

The Board of Directors of the European Investment Bank (EIB) has approved funding of €150 million for the construction of the new LNG terminal that is being built at Vasilikos on the island of Cyprus.

The state-owned Natural Gas Infrastructure Company (ETYFA) is in charge of the project.

Announcing the EIB funding approval last week, the Cyprus Natural Gas Public Company (DEFA) said: ‘The capital budget for the project amounts to €289 million. ETYFA has already secured a €101 million grant from the European Commission through the Connecting Europe Facility (CEF) and €43 million from the EAC’s participation in ETYFA’s share capital. The financial support of €150 million from the EIB is the necessary trigger for the actual works to commence in the Vasilikos area.’

It is understood that the Vasilokos terminal could potentially facilitate LNG bunkering. The project would see the construction of a floating storage and regasification unit (FSRU), a jetty, mooring facilities and a pipeline.

A consortium has already been awarded a contract for the construction of the terminal. Led by China Petroleum Pipeline Engineering, the consortium includes CPP, Metron Energy Applications, Wilhelmsen Ship Management and Hudong-Zhonghua Shipbuilding Group.

Lesley Bankes-Hughes

Lesley Bankes-Hughes