Building petrol storage terminal is key

The construction of a petroleum products storage terminal by 2025 is considered a project of exceptional importance for Cyprus’ strategic energy autonomy, said Energy Minister George Papanastasiou.

On Monday, he addressed the annual General Assembly of the Cyprus Organisation for Storage and Management of Oil Stocks (COSMOS).

Papanastasiou analysed the objectives of COSMOS, noting that the construction of a petroleum products storage terminal owned by the organisation with a horizon of implementation within 2025 is a strategic priority for both the organisation and the Republic.

He argued it would significantly mitigate the problems of finding and renting storage facilities from third parties at a high cost.

“It will make a substantial contribution to enhancing the energy security of the Republic of Cyprus since the reserves will be readily available on the market in case of difficulties in the supply of petroleum products.”

Papanastasiou also referred to the design, construction and operation of the Fire Suppression System of the Vasilikos Energy Centre, which, he said, is also a major objective of COSMOS for 2024.

The Vasilikos Energy Centre is now the only site that hosts critical energy infrastructure until another one is constructed.

“Limited access to reserves due to high demand from the market and larger Member States, as well as very high prices for reserve and storage space rental, were undoubtedly significant challenges for COSMOS in 2023.”

Chair of the board, Kiki Papadopoulou, said strategic stocks are available for immediate release in case of a disruption in fuel supply with a decree issued by the Energy Minister to ensure the uninterrupted operation of Cyprus’ critical infrastructure and activities.

Papadopoulou said the only release ever made by COSMOS was in May 2022, following an invitation from the European Union for the participation of its member states that are not members of the International Energy Agency.