The European Bank for Reconstruction and Development (EBRD) is to provide a €80 mill loan to the Natural Gas Infrastructure Company of Cyprus (ETYFA) to acquire an FSRU and to develop the related infrastructure.
In addition, a €101 mill grant is being extended by the European Union under the Connecting Europe Facility, while the remaining project costs will be funded by a €150 mill loan from the European Investment Bank (EIB) and a €43 mill equity contribution from the Electricity Authority of Cyprus (EAC).
The FSRU will be permanently anchored about 1.3 km off the coast of Limassol in Vasilikos Bay and will connect directly to the adjacent Vasilikos power station, the largest power plant in Cyprus.
ETYFA is jointly owned by the Natural Gas Public Company (DEFA) of Cyprus and EAC, both state-owned entities.
Harry Boyd-Carpenter, EBRD Head of Energy for Europe, the Middle East and Africa, said: “This is a milestone project for Cyprus and we are proud to support it. The project will be a major step forward in Cyprus’s de-carbonisation trajectory. It will reduce both global and local pollution without compromising the island’s long-term transition to a low-carbon energy sector.”
Symeon Kassianides, Chairman of DEFA and ETYFA, added: “After a number of years of hard work we managed to lay the foundations for developing this project of major importance for the energy future of Cyprus. I would like to thank the European authorities and the EBRD for enabling us to come closer to the realisation of a national vision that will allow Cyprus to make the transition to a new energy era.”
ETYFA has selected Hill International (HIL) to lead a consortium and provide owner’s engineer services for the FSRU import terminal project.
The project consists of a former LNGC with a storage capacity of 136,000 cu m that is to be converted to an FSRU in China; construction of a jetty and a jetty-borne gas pipeline; construction of an onshore gas pipeline and associated infrastructure.
Once completed, the terminal will be capable of receiving LNGCs, ranging from 120,000 to 217,000 cu m capacity.
Following an international tender, ETYFA has also signed an agreement with the joint venture involving China Petroleum Pipeline Engineering, Metron, Hudong-Zhonghua Shipbuilding, and Wilhelmsen Ship Management to engineer, procure, construct, manage, and operate the project.
HIL, acting as owner’s engineer, will oversee the project’s implementation by carrying out design reviews and supervising the work at the Chinese shipyard and at Vasilikos.
Given its technical and commercial requirements, HIL is leading a team formed with Bureau Veritas Maritime & Offshore Solutions, plus engineering firms, Tractebel and Gazocean.
