Limassol, Cyprus (PortSEurope) September 17, 2017 – Vassilikos port is to build a jetty to enable the port to develop an LNG floating storage capacity as an estimated cost of €340 million ($406.12 million).
By end 2019, Cyprus plans to start importing LNG to be used to generate electricity. In 2020, the Electricity Authority of Greece (EAC) plans to adapt its plants to burn gas to generate energy. This is the Cynergy project.
CYnergy proposes an approach towards the establishment of a natural gas (NG) supply system on the island of Cyprus, as well as an approach towards the optimisation of the upstream and downstream NG supply chain. The project is linked to programmes for TEN-T Orient/East-Med Core Network Corridor and the complete Core and Comprehensive Port and Road Networks of Cyprus.
By taking the LNG Storage Facility as the focal point, this Action will develop NG penetration strategies in Cyprus, as well as the financial structures for the implementation of the infrastructure investments in the sectors of transport and energy. CYnergy will focus on executing all the necessary market-related, technical and financial, commercial, environmental and permitting studies for the development of the supply chain, the market roll-out and the introduction of LNG and CNG (compressed natural gas) as alternative fuels in the energy and transport sectors.
The state-owned Natural Gas Public Company, which by law will be the sole importer of natural gas, has already decided to hire advisors with a view to invite tenders by early 2018 for the supply of natural gas and the construction of the jetty. The winning bidder will receive a fixed income for the first 10 years.
The European Union’s Connecting Europe Facility will finance around 75% of the total cost.
Cynergy, as the project has been termed, is a proposed approach “towards the establishment of a natural gas supply system on the island of Cyprus”.
“It will focus on executing all the necessary market-related, technical and financial, commercial, environment and permitting studies for the development of the supply chain, the market roll-out and the introduction of LNG and CNG [compressed natural gas] as alternative fuels in the energy and transport sectors,” a 2016 Connecting Europe Facility report said.
Investment includes the construction of a jetty (€53.5 million/$63.9 million), to serve a permanent FSRU, as well as infrastructure to serve an LNG carrier at a cost of €148.7 million ($177.62 million), which will include on-shore pipelines to transport the regasified LNG to the EAC power-production plant at Vasilikos.
An emergency shelter to host the FSRU in case of adverse weather conditions is forecast at around €100 million ($119.45 million).
Greece is also constructing an LNG facility in Alexandroupolis.
The Alexandroupolis Independent Natural Gas System (INGS) project is a modern, cutting edge technology project which comprises an offshore floating unit for the reception, storage and re-gasification of LNG and a system of a subsea and an onshore gas transmission pipeline through which the natural gas is shipped into the Greek National Natural Gas System (NNGS) and onwards to the final consumers.
The Alexandroupolis INGS has also the capacity to connect with and transmit gas into other gas transmission systems which are planned in the same geographical region such as the Trans Adriatic Pipeline (TAP).
The liquefied natural gas (LNG) will reach the INGS floating unit by means of LNG carriers, will be transferred into the floating unit through the unit’s loading arms and will be temporary stored in its cryogenic tanks.
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