Norway's Hoegh LNG is working with oil and gas trader Vitol's business interests on a quick start-up floating storage and regasification unit-based LNG import terminal for Cyprus which could be in operation a year earlier than one planned by state energy company DEFA.
Hoegh said it is working with VTTI Group Co VTT Vasiliko (VTTV), which owns an existing jetty in Vasilikos Port close to the country's power plants, and H4E GasFuel on the project.
The Norwegian regas specialist said it one of its own FSRUs could be moored at the jetty which could be adapted to accommodate the unit.
"The FSRU can stay on location as a bridging solution or for an extended period serving different customers on Cyprus as well as bulk breaking and delivering LNG to other customers in the Mediterranean," the company said.
Hoegh said it has applied for an LNG infrastructure ownership, operations and development license in Cyprus which would be required for the project.
Fast track
Company president and chief executive Sveinung Stohle told TradeWinds the FSRU could be operational by early 2021.
Stohle said Hoegh already had the necessary equipment it needed to install on the jetty and said the unit could be put in place quickly in the same approach to when the company installed an FSRU in Egypt.
He said the Cyprus project is part of Hoegh's strategy to secure new FSRU contracts for its assets and named two of the company's regas units which are currently working as trading vessels, the 170,000-cbm Hoegh Giant (built 2017) and Hoegh Galleon (built 2019), as potential candidates for the business.
Hoegh and VTTV's project lines up as a fast-track rival to DEFA's planned LNG import terminal.
Under this a consortium of China Petroleum Pipeline Engineering Co, Metron, Hudong-Zhonghua Shipbuilding Group and Wilhelmsen Ship Management are buying Shell's 136,967-cbm LNG carrier Galea (built 2002) and converting it into an FSRU for the project.
A new vehicle Etifa, which is 70% controlled by DEFA and 30% by the Electricity Authority of Cyprus, has been set up to own the FSRU, a 1.3-km jetty and the landside infrastructure.
The facility is due to be in operation by January 2022.
Cyprus has been trying set up an LNG terminal for the last 10 years. The country wants to switch its power production plants over from oil to cleaner burning gas.
