Cyprus Picks Engineering Firm for LNG Terminal
The Natural Gas Infrastructure Company of Cyprus (ETYFA) has selected US firm Hill International to head an international consortium that will provide engineering services for the island state's planned LNG import terminal, Hill said on July 31.
Chinese firms China Petroleum Pipeline Engineering and Hudong-Zhonghua Shipbuilding, Norway's Wilhelmsen Ship Management and Greece's Metron were awarded a contract for engineering, procurement, construction, management and operation of the project in December. Hill's role will be to oversee implementation, carrying out design reviews and supervising work at the Hudong-Zhonghua shipyard, where an LNG carrier will be converted into a floating storage and regasification unit (FSRU), and in Vasilikos in Cyprus, where the terminal itself will be built.
The consortium also comprises France's Bureau Veritas Maritime & Offshore Solutions and Gazocean, and Belgium's Tractebel.
The proposed LNG terminal is due online in 2021. Cyprus has been trying to advance the project for some time, but securing financing was difficult. Last year it secured EU financial support, though. The EU has pledged a €101mn grant, while the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) are providing loans of €150mn and €80mn respectively.
The Electricity Authority of Cyprus (EA) is covering the remaining €43mn.
Cyprus wants to use gas to replace diesel as its main fuel in power generation, in order to cut costs and emissions. In making its power sector cleaner, the country will avoid paying EU environmental fines.