VTTI announces plan to build a new oil product terminal in Cyprus to complement supply of oil products to Middle East region
Vitol Tank Terminals International (“VTTI”), recently announced plans to build a major oil import and distribution terminal in the industrial area of Vassiliko, Cyprus.
The terminal, which is set for completion in 2012, marks an initial investment of more than €100 million and will establish the island as a major oil trading hub. It will also complement the supply of oil products to the Middle East region, linking in with VTTI’s storage and refining asset in Fujeirah, one of the largest oil bunkering ports in the world.
Built to world class standards, with the highest safety and environmental standards in place, it 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.
VTTI has extensive experience of building and managing oil terminals, with a network of 11 terminals in five continents, including a major new terminal in Florida, USA, which opened in April 2010. In Europe, VTTI has major terminals in Rotterdam, Amsterdam, Antwerp and Ventspils, Latvia.
Speaking about the new Vassiliko terminal, CEO of the Vitol Group Ian Taylor said: “We are pleased to be proceeding with this major project. 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.
Work is scheduled 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.
VTTI has a proven track record in the successful operation of terminals and the company has already made it clear that it intends to make a number of investments in key local projects to provide additional benefits for the community.