Filenews 22 February 2023
Work began in Vasilikos for the construction of the pier in the context of the Construction of the Terminal for the Reception and Regasification of Liquefied Natural Gas in the area of Vasilikos. At the same time, the preparation of the floating natural gas storage and regasification unit (FSRU) is at an advanced stage in Shanghai, which will be moored to the pier and will allow liquefied natural gas (LNG) to reach the Cypriot market.
The construction company has submitted a new timetable for the completion of the project, by the end of October 2023, according to an update it made today on the progress of the project to the relevant government departments.
Specifically, representatives of the CPP - Metron Consortium LTD, which represents the contractors of the project, said that after the difficulties and delays caused by the lockdowns both in Cyprus and much more in China, the timelines have been postponed and from July 2023, the completion of the project is now expected at the end of October 2023. At the same time, it was mentioned that the project was also affected by the war in Ukraine, but at the moment everything is on track.
The contractor is a joint venture consisting of China Petroleum Pipeline Engineering Co. LTD, Metron Energy Applications S.A., Hudonzg-Zhonghua Shipbuilding Co. Limited and Whilhemsen Ship Management Limited, which has signed a contract with the Natural Gas Infrastructure Company (ETYFA).
As for the construction work on the FSRU, the ship "ETYFA PROMETHEUS", which is being done in Shanghai, these as mentioned have been completed by 90%. The ship will have a dual class, not only as an FSRU, but will also be classified as an LNG Carrier, i.e. a ship capable of international trade.
Also, as mentioned, engineers from the project lenders have visited the project already three times to evaluate the progress. €101 million of EU funding has been secured for the project. euro through the Connecting Europe Facility (CEF). Additional funding was secured through EAC's participation of €43 million. The rest of the money was secured by borrowing from the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD). The total cost of the project is approximately €315 million.
It is noted that the Government approved a request by the contractor for a further increase in the contract price by €25 million, due to the increase in material prices, while at the moment the Government is claiming compensation from the contractor for the delay in the completion of the project.
The project is part of the development area of the Vasilikos Spatial Plan and is a Project of Common Interest for the EU. It is located within the boundaries of the Mari Community in the Larnaca district, 36 km west of the city of Larnaca.
The construction works that are expected to be completed consist of a floating LNG import, mortgaging and regasification unit (FSRU) with a capacity of 137,000 cubic metres, a jetty on which the floating unit will be permanently attached as well as mooring facilities, a pipeline on the pier and unloading arms, an onshore pipeline up to the border of the Vasilikos power station, ground natural gas installations near the point of delivery of the PE and a natural gas storage system for increase inertia for security of supply (buffer).
The project is owned by the Natural Gas Infrastructure Company (ETYFA), a subsidiary of the Natural Gas Public Company (DEFA) and is the largest investment so far for the Republic of Cyprus in the energy sector.
