The European Investment Bank on Thursday approved a project proposed by Cyprus Public Natural Gas Company (Defa) for the import of LNG to the island.
The Cyprus Public Natural Gas Company made the following comment, through its spokesperson:
“Following a meeting of the Board of Directors of the European Investment Bank (EIB), funding was approved today, June 11, in Luxembourg, with funding of € 150 million for the construction of the liquefied natural gas pipeline project in Cyprus. , the Natural Gas Infrastructure Infrastructure Company (ETYFA), a subsidiary of the Public Natural Gas Company (DEFA).
Specifically, lending, given the great importance of the project for the energy future of Cyprus, is 20 years with a favorable low interest rate and concerns construction capital expenditures. The EIB’s decision was taken after assessing the viability of the project and the development prospects created by its successful implementation for the Republic of Cyprus.
It is recalled that the total budget of the project amounts to €289 million. Already, ETYFA had secured a €101 million sponsorship from the European Commission through the Connecting Europe Facility (CEF) and €43 million from the EAC’s participation in ETYFA’s share capital. The financial aid of €150 million from the EIB is the trigger for the start of work in the area of Vasilikos as this completes much of the needs for the construction of state infrastructure for liquefaction of liquefied natural gas.
This is a decision that emphatically reflects the confidence of the institutions of the European community in both the DEFA and the Cyprus Energy Authority. This development significantly strengthens the reliability and consistency shown by DEFA at each stage of project implementation, which each time lays important foundations for the coveted goal of natural gas to become a reality with multiple benefits for Cyprus.”
The approval of the project by the EIB does mean that LNG, converted to natural gas, will be used to power the electrical grid, and that will reduce Cyprus’s dependency on oil to some extent. It will also mean a significant reduction in carbon emissions.