The terminal marks an initial investment of more than EUR100m in the Cyprus economy and will establish the island as a major oil trading hub in the region.
The terminal will be 100% owned, funded and operated by VTTI and will provide around 340,000 cubic metres of storage for gasoline, diesel, jet fuel and fuel oil.
Work is slated 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.
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.
Ian Taylor, CEO of Vitol Group, 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.”
