Pres­i­dent in­au­gu­rates VTT Vasi­likos ter­mi­nal

Financial Mirror (Cyprus) - - FRONT PAGE -

Pres­i­dent Ni­cos Anas­tasi­ades in­au­gu­rated the VTT Vasi­likos Ltd ter­mi­nal for the stor­age and man­age­ment of petroleum prod­ucts, which he said was “in line with our own vi­sion to cre­ate a hub for trad­ing petroleum prod­ucts in the strate­gi­cally im­por­tant re­gion of the eastern Mediter­ranean.”

The ter­mi­nal, with an in­vest­ment of EUR 300 mln, con­sti­tutes the spring­board for devel­op­ment in the Vasi­likos area and it is the largest pri­vate en­ergy project ever con­structed in the Repub­lic, he said.

Anas­tasi­ades said that due to its strate­gic lo­ca­tion, the ter­mi­nal con­nects the mar­kets of Europe and the Black Sea with those of the Mid­dle East and Asia, high­light­ing its sig­nif­i­cance for the wider re­gion as de­lib­er­a­tions are tak­ing place for up­grade of the Suez Canal to al­low ships of larger ca­pac­ity to pass by this strate­gic naval pas­sage. The project, he said, also helped the gov­ern­ment over­come a long­stand­ing prob­lem in Lar­naca where the old re­fin­ery and oil stor­age tanks were based.

Al­ready, the Cyprus Or­gan­i­sa­tion for Stor­age and Man­age­ment of Oil Stocks has con­cluded a three-year agree­ment with VTTV for the rental of stor­age space to main­tain and man­age the na­tional oil stocks that are be­ing kept at the Cyprus Petroleum Stor­age Com­pany’s fa­cil­i­ties.

Anas­tasi­ades noted that the cost of stor­ing the na­tional stocks in the VTTV fa­cil­i­ties will re­main at the same level, while, at the same time, an op­por­tu­nity has been cre­ated to repa­tri­ate the re­serves Cyprus kept abroad, se­cur­ing a strate­gic ad­van­tage in case of a sud­den en­ergy cri­sis.

He added that the Coun­cil of Min­is­ters has ap­proved a se­ries of com­pen­sa­tion mea­sures for the ben­e­fit of the eight com­mu­ni­ties of the area, al­ways in col­lab­o­ra­tion with the lo­cal lead­er­ship and in line with their de­mands.

At the same time he said that the project con­sti­tuted an eco­nomic achieve­ment for Cyprus, as it started in the mid­dle of the eco­nomic cri­sis.

As of Fri­day, Cyprus of­fi­cially forms part of the coun­tries where oil is traded for the pur­pose of reach­ing the in­ter­na­tional mar­kets, said Ge­orge Pa­panas­ta­siou, Man­ag­ing Direc­tor of VTT Vasi­liko Ltd.

He added the project was built by J&P ac­cord­ing to the VTTI Group’s high­est tech­no­log­i­cal and safety stan­dards, fully fi­nanced by the par­ent com­pany, VTTI B.V. and its share­hold­ers Vi­tol and MISC.

The ter­mi­nal con­sists of 28 tanks, with a to­tal ca­pac­ity of 544,000 cu.m., a 1.5 km­long marine jetty and four berths that can ac­com­mo­date ves­sels from 5,000 up to 160,000 DWT.

Pa­panas­ta­siou said that the ter­mi­nal will be the most com­pet­i­tive oil stor­age and man­age­ment fa­cil­ity in the eastern Mediter­ranean, since the in­creased costs of other con­trib­u­tors in­volved in the trans­port of oil via Cyprus are in the process of be­ing re­duced through leg­isla­tive ar­range­ment.

On his part, Rob Ni­jst, Chief Ex­ec­u­tive Of­fi­cer of VTTI B.V., said that “as in­vestors in the project, we take pride in the com­ple­tion of the con­struc­tion of a state-of-the-art, world class ter­mi­nal, which will sup­port Cyprus’ am­bi­tion to be­come a lead­ing en­ergy hub in the eastern Mediter­ranean and which will con­trib­ute sig­nif­i­cantly to the Cypriot econ­omy”.

Ni­jst said that VTT Vasi­liko Ltd is a 100% sub­sidiary of VTTI B.V, a multi­na­tional com­pany based in Rot­ter­dam, partly listed at New York Stock Ex­change. VTTI owns and man­ages 12 sim­i­lar oil ter­mi­nals on five con­ti­nents, with a to­tal ca­pac­ity reach­ing 8.5 mln cu.m.

Ni­jst also an­nounced the pos­si­bil­ity of fur­ther in­vest­ments in Cyprus, such as the ex­pan­sion of the ter­mi­nal and other en­ergy in­fra­struc­ture projects.

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