Nicosia - Cyprus takes its first step into the natural gas era on Thursday when President Nicos Anastasiades lays the foundation stone of the island’s first LNG terminal at Vasiliko, Larnaca. The €289 mln project is considered to be Cyprus’ largest energy venture and features an LNG floating storage and regasification unit (FSRU), a jetty, mooring facilities, a pipeline, and other onshore and offshore related infrastructure.
Construction is expected to be concluded in 2022: “The project will pave the way for the electricity market, as without natural gas the market cannot open,” said Natural Gas Public Company (DEFA) chair Symeon Kassianides. He said that studies conducted by DEFA and the Electricity Authority of Cyprus (EAC) have shown that natural gas will bring down electricity bills by 15-25%.
The project has received a €101 mln grant via the EU’s Connecting Europe Facility acquired by the Natural Gas Infrastructure Company (ETYFA), €43 mln in equity funding from the EAC which owns 30% of ETYFA, as well as a €150 mln loan from the European Investment Bank and an additional €80 mln from the European Reconstruction and Development Bank.(READ MORE)