Cyprus Major Oil Hub?

Dutch energy company VITOL has announced plans to build a new oil product terminal and "make Cyprus a major regional oil trading hub," it said in a statement.

The oil import and distribution terminal will be built in the industrial area of Vassiliko, along the coastal area just outside Limassol.

The terminal, which is set for completion in 2012, marks an initial investment of more than €100 million in the economy, said a company spokesman.

VITOL claims the facility will be "built to world class standards, with the highest safety and environmental standards in place." It will provide around 340,000 cubic metres of storage for gasoline, diesel, jet fuel and fuel oil.

The company already has a network of 11 terminals in five continents, including a major new terminal in Florida, USA, which opened in April 2010. In Europe, VTTI has major terminals in Rotterdam, Amsterdam, Antwerp and Ventspils, Latvia.

Speaking about the new Vassiliko terminal, CEO of the Vitol Group Ian Taylor said: “We are pleased to be proceeding with this project. This is an important project for Cyprus. While global trading conditions remain challenging, a world class terminal built and operated in a professional way, will provide jobs and potential for long term investment. The terminal will play an important part in supplying regional markets to meet growing energy demand, as well as supplying the local market in Cyprus.

Work is scheduled to start on the Vassiliko facility in the next few months. In addition to storage tanks, a jetty will be constructed to handle seagoing vessels, said VITOL.

Oil products will arrive at the new terminal from the international oil markets and current plans for the terminal are focused on re-exporting to regional markets, as well as supplying the inland market in Cyprus.

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