A Chinese-led consortium has entered into a EUR290m ($322.7m) contract with Cyprus’ Natural Gas Infrastructure Company (ETIFA) to develop the country’s first LNG terminal.
The multinational consortium is led by China Petroleum Pipeline Engineering and also joined by Hudong-Zhonghua Shipbuilding, Greek company Metron and Norwegian company Wilhelmsen Ship Management.
The LNG terminal, which will include a floating storage and regasification unit (FSRU), is expected to be completed by the end of 2021 or early 2022.
The project has secured a EUR101m grant from the EU under the Connecting Europe Facility (CEF), while the Cyprus Electricity Authority will contribute EUR43m to take a 30% stake in ETIFA. The rest of the construction costs will by borne by international lenders, such as the European Investment Bank and the European Bank for Reconstruction and Development.
George Lakkotrypis, energy minister of Cyprus, believes bringing natural gas to Cyprus will safeguard energy supply, diversify the energy mix and promote competition in the electricity market through the involvement of independent producers.