VTT Vasiliko and J&P Group have entered into an agreement to construct a €220m oil storage terminal in Vasilikos Port, Cyprus.
VTT Vasiliko, a subsidiary of VTTI, said the project aims to turn Cyprus into an energy hub, with the construction work expected to begin in two week’s time and completed in 2014.
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The private terminal will initially have a capacity of 357,000 cubic metres of oil products including gasoline, diesel, jet fuel, gasoil, and MTBE in the first phase, rising to 643,000 cubic metres in the second phase.
VTT Vasiliko managing director George Papanastasiou said the investment will make Cyprus a transit centre of energy products trading.
"At the same time, trade with the East Med and European markets will be developed and partnerships to provide storage options for the inland market and strategic stock obligations will also be possible," added George.
"The project will boost confidence for foreign direct investment and commercial activities in Cyprus."
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By GlobalDataJ&P general manager Efthyvoulos Iacovides said this project is unique for Cyprus and requires specialisation, expertise and execution capability.
"J&P, with its experience in projects of similar complexity around the world, will begin the project immediately and will complete it within the deadline of the agreement, the first phase in 24 months and the second in 26,5 months," Iacovides added.
The scope of the project also entails the construction of a marine jetty with four berths, which will extend 1,200m offshore.
The construction of the oil terminal is estimated to generate revenues of €18m per year from port fees, and the country is expected to receive further proceeds from taxes paid by companies to transport their products through the terminal.
