---

Vitol Tank Terminals International (VTTI) is scheduled to complete construction of its 643,000-cubic metre (cbm) oil terminal complex in Cyprus by the end of 2014, Reuters reports.

VTTI announced plans in July 2010 to build a major oil import and distribution terminal in the industrial area of Vasiliko, Cyprus. Construction work began on the island in early 2011. VTT Vasiliko Ltd. (VTTV) is the Cyprus-registered company that is in charge of the terminal development project.

The new facility will be a storage terminal for fuel oil, gasoline, diesel and jet fuel, gasoil and MTBE. Phase one of the project will create 20 tanks and a capacity of 357,000 cbm. Phase two will create 14 tanks and a capacity of 286,000 cbm. The total cost of the project is estimated at €200-€300 million ($258-$387 million).

Speaking to reporters, Managing Director of VTT Vasiliko, George Papanastasiou, said: "Cyprus is ideally placed for this kind of activity. The eastern Mediterranean is a key juncture for fuel transportation from the Black Sea region towards Asia."

Papanastasiou added that the first and second phases would be completed in the first quarter of 2014 and the third phase at the end of 2014.

VTTI is a leading player in the storage and terminal business - a 50/50 joint venture between the Vitol Group, one of the world’s largest energy traders and MISC, the major Malaysian shipping company.

Oil products will arrive at the new terminal from the international oil markets and plans for the terminal are focused on re-exporting to regional markets, as well as supplying the inland market in Cyprus.

Papanastasiou expects the new terminal to benefit from the estimated 250 ship-to-ship transfers that took place in the region last year. Due to ship capacity constraints on the Straits of Bhosphorus, vessels carrying fuel from the Black Sea region to Asia conduct transfers onto larger vessels in seas around Cyprus, which is located north of the Suez Canal.

VTTI estimates that it will serve some 550 ships per year when the Vasiliko terminal is fully operational. It is building a four-berth 1.2 km long jetty capable of loading or discharging 1,250 cbm per hour.

Image: VTTI Vasiliko, Cyprus