Thursday, April 28, 2022

VASSILIKOS - ALL ABOUT ENERGY AND BUILDING 30 YEAR PROJECTS

 Filenews 28 April 2022 - by Angelos Nikolaou



The decision to concentrate all critical energy infrastructure in Vassilikos, initiated the revision of the Spatial Development Plan of the entire region with the inclusion of new uses and activities. The revision of the master plan was deemed necessary due to the plans of the Ministry of Transport, Communications and Works and the Cyprus Ports Authority for the upgrading/ expansion of the Vassilikos port and the non-inclusion of the project and the uses that will be made in it, in the existing plans. The Department of Environment has launched a public consultation until 27/5/2022, the Strategic Environmental Impact Study for the regulatory development plan for the Vassilikos area.

Furthermore, it is now clarified which facilities and activities are not allowed in this zone, such as urea and ammonia production facilities, asphalt plants, as well as new power plants.

The main priority is the optimal industrial development of the area, taking into account the prospect of discovering significant additional quantities of natural gas, the transfer of oil, LPG and asphalt storage facilities from Larnaca to Vassilikos and the continuation of the smooth operation of the existing facilities in the area of the Vassilikos Spatial Plan. It is also a question of reviewing the sites that had been proposed under the existing Spatial Plan and of maintaining or proposing new ones where appropriate. Such areas concern: • the construction of a natural gas liquefaction plant with a capacity of up to five LNG trains (5 MTPA/train), • the storage facilities for petroleum products and liquefied petroleum gas (LPG), • the industries related to natural gas (petrochemical industries).

The revised Spatial Plan includes port areas for energy purposes and mainly for the servicing of offshore hydrocarbon exploration and exploitation activities in the Cyprus EEZ and the wider area of the Eastern Mediterranean, as well as for the servicing of intrusive cargoes, in accordance with the plans of the Ministry of Transport, Communications and Works and the Cyprus Ports Authority. It also includes the plans of the Natural Gas Public Company (DEFA) for the infrastructure for the supply and distribution of natural gas in Cyprus for the needs of the internal market.

The most important changes that follow are the expansion of the port of Vassilikos by the Cyprus Ports Authority, which in recent years has entrusted a large part of its profitable port activities to the private sector. Thus, after the privatization of most of the port of Limassol and Larnaca along with the marina, it turns to the improvement and expansion of the Vassilikos port.

Vassilikos is the main port for handling industrial cargoes, such as bulk cargoes and liquid fuels. The Strategic Plans of the Authority concern the best possible use of the prospects arising from the development of liquefied natural gas (LNG) in shipping and from hydrocarbons located in the Exclusive Economic Zone (EEZ) of the Republic of Cyprus. The result of the above led to the decision to upgrade and expand the existing port in order to adapt to the new requirements. This decision was based on the fact that Vassilikos is geographically located at a central point of the southern coast of Cyprus with an easy road connection to the motorway and the prohibitive cost of constructing a new port from scratch.

The main objective of updating the Spatial Plan is the siting of the new uses that are planned or for which there are requests that are examined by the competent Government Departments, as well as the compatibility of the requested facilities in relation to the existing ones.

The Republic of Cyprus, as far as the Study Area is concerned, has selected and promoted the principle of the spatially concentrated development of energy installations and business activities of the secondary sector. This area, both from the existing activities and from the planned to be installed in it, is already and is intended to be the main Energy Hub of hyperlocal scale and strategic importance of Cyprus.

The choice of concentrated development, compared to the spatially dispersed in more areas of the island, presents the advantage of ensuring better environmental conditions in the rest of the area, enabling synergies between facilities and more effective protection. Therefore, with the further development of the area already decided, a strong developmental and business pole of the secondary sector is created. The compatibility between the existing and the proposed facilities will be ensured mainly by the establishment of safe operation conditions and the strict control of their compliance for each unit and for the site as a whole.

However, from the point of view of the security of the energy infrastructure, there is a need for parallel exploration of another area, for their dispersion. It is noted that the effort to find another area has begun.

They build works of 30 years

The aim of the proposed revised Spatial Development Plan in the Vassilikos area is for the existing and future facilities to operate in an effective, synergistic, safe and environmentally sound manner. The proposed future projects and the general development of the area for the next 30 years should be compatible with the existing facilities, taking into account the risks, safety, the environment and the social dimension.

The competent authority should assess and make recommendations for more effective protection of the area and the facilities, including the examination of the possibility of a terrorist attack or a serious natural disaster (e.g. seismic activity, tsunamis, extreme climatic conditions), as well as the environmental compatibility of future developments.

The specific objectives of the Spatial Development Plan of the Vassilikos area include the provision of a framework that will allow the optimal industrial development of the area, as well as the optimal allocation of land and the provision of a framework for the storage of hydrocarbons and other industries related to energy, natural gas and related infrastructure.

It also includes the allocation of land for LNG facilities, taking into account the possible discovery of significant additional natural gas reserves in the Cyprus Exclusive Economic Zone and in the Eastern Mediterranean in general.

A further objective is to evaluate existing and planned port facilities (including the proposed expansion of the Vassilikos Port) in relation to the onshore activities and other commercial and industrial activities planned to serve (e.g. supply bases for the offshore activities of the hydrocarbon industry).

Existing main facilities

► Vassilikos cement factory and Vassilikos port.

► EAC power station, marine facilities (Single Point Mooring, Water intake, thermal outfall).

► Military base and military port.

► Liquid fuel installations (Petrolina, VTTV and HELPE/Yugen).

► VTTV Quay.

► Port of Limeniskos Archirodon.

► Pier Skyra Vasa (has a temporary installation permit).

► Aquaculture.

New infrastructure to be implemented

► Liquid fuel installations (KODAP, BP and Exxon Mobil).

► LPG installations (VLPG, HELPE).

► Facilities for the import of liquefied natural gas (ETYFA, New dock, onshore infrastructure).

► Natural gas liquefaction plant (SYFA) for exports.

► New independent power stations (PEC and Paramount).

► Road network.

► Fuel piping, firefighting, service networks, etc.

► New fire station.

► New police station.

► Extension of Vassilikos port to the east.

► Extension/construction of a new military port in the west.

► Natural gas compressor station/metering station and EastMed natural gas pipeline landing point.

► Floating LNG Storage and Regasification Unit (FSRU).

► Asphalt storage facilities (bitumen).

► Anchorage and undersea pipelines for the import of LPG.

What VTTV claims

► Extension of its dock with the addition of a vertical cantilever (finger).

► Embankment on the foot of its dock.

New requests for suggested units

► Power stations.

► Onshore installations to support offshore mining activities.

► Construction of a plant for the conversion of high-sulphur marine fuel into a low-sulphur marine fuel.