China-led consortium set to build LNG terminal in Cyprus

A multinational consortium has been selected as the preferred bidder for the construction of an LNG terminal at Vassiliko Port in Cyprus.

The consortium is led by the China Petroleum Pipeline Engineering Corporation (CPPEC) with other members being Wilhelmsen Ship Management, Aktor, Metron, and Hudong-Zhonghua Shipbuilding.

It is worth noting that two more consortia were in the running – Samsung, Posco E&C, Mitsui O.S.K. Lines, and Osaka Gas and the so-called European Consortium consisting of Damco Energy, Enagas Services Solution, GasLog LNG Services, SNAM, and Terna.

The LNG import terminal 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.

The FSRU will have 125,000 cubic meters storage capacity at least while the entire facility will be capable of unloading LNG from LNG carriers ranging in size from 120,000 cubic meters to 217,000 cubic meters.

The consortium will now be invited in Nicosia to finalize the process and sign the contracts with ETYFA – the Cypriot Natural Gas Infrastructure Company.

Symeon Kassianides, chairman of Cyprus Natural Gas Public Company (DEFA), was cited as saying that if everything goes according to plan, the contracts with the preferred bidder would be signed in mid-October 2019.

The total value of the project is EUR 500 million ($554M). It is divided into two portions, first of which is the design and construction for EUR 300 million while the remaining part is for the operation and maintenance.

The project is scheduled for completion in 2021 and is co-financed by a grant of 40 percent from the European Union’s Connecting Europe Facility (CEF) financing instrument.

To remind, the tender was issued in October 2018 following the completion of a feasibility study in 2016.