CyprusGas2EU Action aims at introducing Natural Gas to the island of Cyprus in order to end the current energy isolation of the Member State, by establishing the required infrastructure at the Lemesos Port, Terminal 2 (Vassiliko). The investment focuses on: a) deployment of a floating gas storage and gasification plant, (FSRU), b) construction of port infrastructure for mooring, anchoring and anchoring the FSRU and on c) construction of onshore infrastructures to import gas to Cyprus for use in power generation. The project will contribute significantly to the reduction of air pollution and carbon emissions by allowing switching from heavy fuel oil to liquified natural gas for power/electricity generation.
More specifically, CyprusGas2EU aims the:
- Termination of the current energy isolation of Cyprus and use of liquified natural gas in power electricity generation
- Diversification to a region mostly dominated by one single source of supply
- Reduction of air pollution and emissions by allowing switching from heavy fuel oil to gas for power generation
- Energy security and price competitiveness
- Procurement of a Floating technological solution (FSRU) for LNG imports to Cyprus (gas supply solution), including reception, storage and regasification for liquefied natural gas either onshore or nearshore in Cyprus
- Construction of a Gas Storage facility to facilitate a Buffer for the internal gas pipeline to EAC power station and to enable security of supply for the FSRU and other gas projects such as the EastMed pipeline.
Ocean Finance, in collaboration with CYnergy partners, developed and coordinated the investment application for the CyprusGas2EU Action under the 2017 CEF Energy Call on behalf of the Cyprus Ministry of Energy Commerce, Industry and Tourism. Within the context of the application, Ocean Finance also exclusively performed the Cost-Benefit Analysis, the Cross-Border Cost Allocation Proposal, and the Business Plan for the chosen financing solution. The project received €101.5 million, which accounts for the 40% of the total amount needed for the successful completion of the project.