VTT Vasiliko Ltd and J&P Group announce the signing of a strategic cooperation agreement for the construction of an oil storage terminal at Vasilikos, an investment of 220 million euro that will turn Cyprus into an energy hub.

The construction of the terminal is expected to begin in two weeks and to be completed in 2014. At the first phase, the terminal will have a capacity of 357 Km³ of oil products (Gasoline, Diesel, Jet fuel, Gasoil, MTBE) which will reach 643 Km³ with the completion of the second phase.

Within the framework of the project, a marine jetty with four berths will be created. The jetty will extend off-shore 1200m and will include two loading arms per berth per product, capable of loading / discharging 1250 m³/h per product.

On the occasion of the agreement signing with J&P, the Managing Director of VTT Vasiliko Ltd, Mr George Papanastasiou, said: “This is an investment of huge importance, which will make Cyprus a transit centre of energy products trading, through the import, export and trans-shipment of oil products from / to the international market. At the same time, trade with the East Med and European markets will be developed and partnerships to provide storage options for the inland market and strategic stock obligations will also be possible. In addition, the project will boost confidence for foreign direct investment and commercial activities in Cyprus”.

For the construction of the oil terminal of VTT Vasiliko Ltd it is estimated that more than 600 new jobs will be created within 2012, whereas another 60 people from Cyprus will be employed to operate and maintain it. Additional jobs will be created in service provision to support terminal and shipping activities.

The General Manager of J&P, Efthyvoulos Iacovides, said: “This project is unique for Cyprus and requires specialization, expertise and execution capability. J&P, with its experience in projects of similar complexity around the world, will begin the project immediately and will complete it within the deadline of the agreement, the first phase in 24 months and the second in 26,5 months”.

Through the terminal activities, it is estimated that Cyprus will gain revenues of 18 million euro per year from port fees, while the state will have additional proceeds from taxes paid by companies which will trade their products via the terminal.

VTT Vasiliko Ltd is a company registered in Cyprus, a subsidiary of VTTI B.V. VTTI is a joint venture of two companies, with investments in oil storage terminals with total capacity of 8.5 million m³. VTTI’s shareholders are the Dutch energy giant Vitol, one of the world’s largest energy trading companies, and MISC, a leading international shipping company, registered in the Malaysian stock market and owned by the state oil company Petronas.