VTTI plans for Cyprus oil terminal

Vitol Tank Terminals International (VTTI), an owner and operator of a network of petroleum products and terminals, announced plans today to build a major oil import and distribution terminal in the industrial area of Vassiliko, Cyprus. The terminal is set for completion in 2012 and makes for an initial investment of more than euro 100 million in the Cyprus economy with hopes of establishing the island as a major oil trading hub in the region.

The terminal will be 100 percent owned, funded and operated by VTTI and will provide approximately 340,000 cubic meters of storage space for diesel, gasoline, jet fuel and fuel oil when completed. According to the press release, VTTI has extensive experience of building and managing oil terminals – they have a network of 11 terminals on five continents.

Ian Taylor, CEO of Vitol Group, says in the press release, “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.”

VTTI also believes that because of Cyprus’ geographical location and its membership with the EU, it was the right place for the project. Construction of the new terminal is scheduled to begin in the upcoming months. A jetty will also be constructed in addition to the fuel storage tanks. Current plans for the terminal are focused on re-exporting to regional markets and supplying the inland market in Cyprus.

The Company has a gross combined capacity of nearly 6 million cubic meters, which is set to expand to nearly 7 million cubic meters by 2013.

Photo courtesy of Joe Gough