Cyprus LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Cyprus LNG Terminal, also called Vassiliko FSRU Terminal, is a proposed LNG terminal in Cyprus. There have been no development updates on the export terminal since 2015 and the project is presumed to be cancelled. The import terminal is still proposed.

Location

The map below shows the location of the project, near Vassiliko Port, in Larnaca District.

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Export Project Details

  • Owner:
  • Location: Vassiliko (Vasilikos) Port, Larnaca District, Cyprus
  • Coordinates: 34.72772, 33.30104 (exact)
  • Capacity: 5.0 mtpa, 0.72 bcfd
  • Status: Cancelled
  • Type: Export
  • Trains: 3 to 8
  • Start Year: 2021[1]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Import Project Details

  • Owner: DEFA
  • Location: Vassiliko (Vasilikos) Port, Larnaca District, Cyprus
  • Coordinates: 34.72772, 33.30104 (exact)
  • Capacity: 0.6 mtpa[2]
  • Status: Construction[2]
  • Type: Import
  • Financing: European Investment Bank loan of EUR 150 million, Connecting Europe Facility grant of EUR 101 million and additional contributions from the Electricity Authority of Cyprus and the European Bank for Reconstruction and Development[3]
  • Start Year: 2022[4]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

In 2015, Forbes estimated the cost of the Cyprus LNG Terminal at $6 billion.[5] It will include an LNG floating storage and regasification unit (FSRU), a jetty intended for the unit’s mooring, a jetty borne, a natural gas pipeline and an onshore gas pipeline, a shoreside block valve facility, an onshore natural gas buffer solution and a pressure reduction and metering station. The planned LNG facility will have an LNG storage capacity of 120,000-250,000 m3 and will aim to provide a send-out capacity of regasified natural gas of up to 220T/hour(max yearly sendout of approx.2.44b cm /year and a max daily average of approx.76.17GWh /day) initially and be able to cover additional capacity requirement in the future. It is partially funded by the European Union (105,737,320 EUR/117,178,098 USD) and is listed as a Project of Common Interest (PCI). Commissioning is expected in 2022.[4]

Import Proposal

Since at least 2009, the government of Cyprus has been promoting a proposal to build a liquefied natural gas (LNG) regasification facility near Vassiliko Port in Cyprus. The facility would import LNG for power generation and industrial purposes. It would be built by Natural Gas Public Company (DEFA), the Cypriot state-owned gas company.[6][7] In October 2016, DEFA initiated a study of the gas import proposal.[8]

In October 2018 the Cypriot government launched a tender for the import terminal at Vasiliko port, and in January 2019 extended the deadline for offers to March 2019.[9]

In August of 2019, the Natural Gas Public Company of Cyprus (DEFA) announced that a Chinese-led consortium has been chosen as the preferred bidder for the construction of the EUR 250 million LNG import terminal and related infrastructure. The consortium includes JV China Petroleum Pipeline Engineering Co Ltd, AKTOR S.A. and METRON S.A., with Hudong-Zhonghua Shipbuilding Co. Ltd and Wilhelmsen Ship Management Limited.[10]

The LNG import project is co-financed by a grant of 40%, or up to $111 million USD from the European Union’s “Connecting Europe Facility”. The terminal is scheduled for completion in 2021. It will include a floating storage regasification unit (FSRU), a jetty for the mooring of the FSRU, jetty-borne and onshore pipelines, as well as additional facilities.[11]

The terminal is being built by a consortium of China Petroleum Pipeline Engineering, Metron, Hudong-Zhongua Shipbuilding and Wilhelmsen Ship Management.[12]

In June 2020, it was reported that the European Investment Bank had agreed to provide the import project with a loan of 150 million euros, a decision which triggered the payment of a 101 million euros grant from the European Commission, which already approved the project as part of the Connecting Europe Facility programme. With overall project costs estimated to be 289 million euros, the remainder will be covered by financing from the Electricity Authority of Cyprus and the European Bank for Reconstruction and Development.[3]

In July 2020, Cypriot officials held a groundbreaking ceremony to mark the start of construction for the FSRU terminal. It was also reported that DEFA had opened a tender for the supply of LNG and had received expressions of interest from 25 international companies.[13]

Export Proposal

The proposed export terminal will have a minimum of three trains and a maximum of eight trains.[14]

In recent years, large natural gas fields have been discovered off the coast of Cyprus. A proposal exists — apparently separate from the import/regasification project described above — to build a 5-million-metric-per-year (mtpa) LNG liquefaction facility at the same location, at Vassiliko Port.[15] In August 2014, the Cypriot government entered into negotiations with several firms over the LNG facility. In June 2015, several oil & gas companies declared Cyprus's Aphrodite gas field to be commercially viable.[16] According to one proposal, Israeli gas would also be exported from the Cyprus LNG facility.[17]

Forbes reported in November 2015 that the if Egypt joins Cyrus and Israel in a venture to import gas to Egypt, the three countries have enough infrastructure to form a regional Eastern Mediterranean gas hub.[5]

There have been no development updates on the export terminal since 2015 and the project is presumed to be cancelled. The import terminal is still proposed.

Articles and resources

References

  1. ENERGY: Energean ups the ante in bid to supply natural gas to Cyprus, Financial Mirror, November 19, 2019
  2. 2.0 2.1 2020 World LNG Report, page 102, International Gas Union, April 27, 2020
  3. 3.0 3.1 Elias Hazou,After 15 years, we’re still waiting for gas, Cyprus Mail, June 14, 2020
  4. 4.0 4.1 Development of gas infrastructure in Cyprus European Commission, accessed December 2, 2019
  5. 5.0 5.1 Simone Tagliapietra and Georg Zachmann, "Egypt Holds The Key To The Eastern Mediterranean's Gas Future," Forbes, November 29, 2015
  6. LNG Supply to Cyprus, Cyprus Ministry of Commerce, Industry, & Tourism presentation, 6 Apr. 2009.
  7. Cyprus to look at importing LNG, Cyprus Mail, 7 July 2016.
  8. Cyprus revives LNG import plans, Interfax Global Energy, 28 Oct. 2016.
  9. Cyprus extends tender deadline for LNG import facility, LNG World News, Jan. 25, 2019
  10. Shailaja A. Lakshmi China-led Consortium Bids for Cyprus LNG ENERGY: Energean ups the ante in bid to supply natural gas to Cyprus, Marine Link, August 25, 2019
  11. ENERGY: Energean ups the ante in bid to supply natural gas to Cyprus, Financial Mirror, November 19, 2019
  12. Chinese-led consortium to build Cyprus’ gas import terminal, Associated Press, December 13, 2019
  13. Gary Lakes, Cyprus enters LNG era with FSRU groundbreaking at Vassilikos, S&P Global, July 10, 2020
  14. Cyprus Considers Eight Train LNG Export Terminal, GCaptain, July 12, 2013
  15. Cyprus, Total sign MoU for LNG terminal, Reuters, 7 Nov. 2013.
  16. Cyprus: several factors to determine LNG development, LNG World News, 19 Apr. 2016.
  17. Cyprus President invites Israel to seriously consider exporting gas from Cyprus LNG plant, Famagusta Gazette, accessed July 2017.

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