Cyprus LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

Cyprus LNG Terminal, also called the Vassiliko FSRU Terminal, or the CyprusGas2EU project, is a proposed LNG import terminal in Cyprus. While the import terminal remains under-construction, the export terminal appears to be cancelled with no development updates since 2015.


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

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Project Details

Import Project Details

  • Owner: DEFA
  • Location: Vassiliko (Vasilikos) Port, Larnaca District, Cyprus
  • Coordinates: 34.72772, 33.30104 (exact)
  • Capacity: 0.6 mtpa[1]
  • Status: Construction[1]
  • Type: Import
  • Cost: €289 million[2]
  • Financing: European Investment Bank loan of €150 million, Connecting Europe Facility grant of €101 million, European Bank for Reconstruction and Development loan of €80 million, €43 million equity contribution from the Electricity Authority of Cyprus[3]
  • Start Year: 2022[4]

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

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[5]

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


Import Proposal

In 2015, Forbes estimated the cost of the Cyprus LNG Terminal at US$6 billion.[6] 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]

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.[7][8] In October 2016, DEFA initiated a study of the gas import proposal.[9]

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.[10]

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.[11]

The LNG import project is co-financed by a grant of 40%, or up to US$111 million 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.[12]

The terminal is being built by a consortium of China Petroleum Pipeline Engineering, Metron, Hudong-Zhongua Shipbuilding and Wilhelmsen Ship Management.[13]

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 grant from the European Commission, which already approved the project as part of the Connecting Europe Facility programme.[14] The European Bank for Reconstruction and Development has also provided the project with an €80 million loan, and the Electricity Authority of Cyprus is providing a €43 million equity contribution.[3] In December 2020, the European Commission announced that it had approved, under EU State aid rules, Cyprus's intention to issue a state guarantee for securing the project loans.[15]

Construction of the FSRU-based import terminal at the Vasilikos port in Cyprus started in July 2020.[16] 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.[17]

Export Proposal

There was a proposal - separate from the import/regasification project — to build a 5-million-metric-ton-per-year (mtpa) LNG liquefaction facility at the same location, the Vassiliko Port.[18] The proposed export terminal would have had a minimum of three trains and a maximum of eight trains.[19]

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.[20] According to one proposal, Israeli gas would also be exported from the Cyprus LNG facility.[21]

Forbes reported in November 2015 that 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.[6]

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


  1. 1.0 1.1 2020 World LNG Report, page 102, International Gas Union, April 27, 2020
  2. EIB approves €150 mln for Cyprus LNG terminal, Financial Mirror, Jun. 12, 2020
  3. 3.0 3.1 EBRD supports decarbonisation of energy sector in Cyprus, European Bank for Reconstruction and Development website, Jul. 31, 2020
  4. 4.0 4.1 Development of gas infrastructure in Cyprus European Commission, accessed December 2, 2019
  5. ENERGY: Energean ups the ante in bid to supply natural gas to Cyprus, Financial Mirror, November 19, 2019
  6. 6.0 6.1 Simone Tagliapietra and Georg Zachmann, "Egypt Holds The Key To The Eastern Mediterranean's Gas Future," Forbes, November 29, 2015
  7. LNG Supply to Cyprus, Cyprus Ministry of Commerce, Industry, & Tourism presentation, 6 Apr. 2009.
  8. Cyprus to look at importing LNG, Cyprus Mail, 7 July 2016.
  9. Cyprus revives LNG import plans, Interfax Global Energy, 28 Oct. 2016.
  10. Cyprus extends tender deadline for LNG import facility, LNG World News, Jan. 25, 2019
  11. 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
  12. ENERGY: Energean ups the ante in bid to supply natural gas to Cyprus, Financial Mirror, November 19, 2019
  13. Chinese-led consortium to build Cyprus’ gas import terminal, Associated Press, December 13, 2019
  14. Elias Hazou,After 15 years, we’re still waiting for gas, Cyprus Mail, June 14, 2020
  15. State aid: Commission approves State guarantee for the financing of the LNG terminal in Cyprus, European Commission, Dec. 8, 2020
  16. GIIGNL 2021 Annual Report, accessed May 5, 2021
  17. Gary Lakes, Cyprus enters LNG era with FSRU groundbreaking at Vassilikos, S&P Global, July 10, 2020
  18. Cyprus, Total sign MoU for LNG terminal, Reuters, 7 Nov. 2013.
  19. Cyprus Considers Eight Train LNG Export Terminal, GCaptain, July 12, 2013
  20. Cyprus: several factors to determine LNG development, LNG World News, 19 Apr. 2016.
  21. Cyprus President invites Israel to seriously consider exporting gas from Cyprus LNG plant, Famagusta Gazette, accessed July 2017.

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