Cyprus set for first LNG terminal in 2021

Construction of Cyprus's first LNG terminal station is set to begin soon following an agreement between the state's Natural Gas Public Company (DEFA) and a Chinese-Greek consortium of China Petroleum Pipeline Engineering and METRON to build an LNG terminal at Vassiliko.

The China Petroleum Pipeline Engineering/METRON joint venture is also expected to bring in Hudong-Zhonghua Shipbuilding and Norway's Wilhelmsen Ship Management to convert an LNG carrier ship into an FSRU. The ‘Galea’ natural gas carrier will be modified to act as an FSRU for 25 years from 2021. The total cost of the ship’s modification and operation as an FSRU is estimated at around €260 million, of which €101 million will be obtained from the EU. There are also preliminary agreements with the EIB and EBRD to finance the project.