The Department of Electricity and Gas (DEFA) has announced a significant expansion of the Vasilikos LNG import terminal, with total investment of €80 million to increase regasification capacity from 600 to 840 million cubic meters per annum.
Expansion Details
The upgrade project includes installation of a second regasification unit and expanded storage capacity at the existing FSRU (Floating Storage and Regasification Unit) at Vasilikos. The project is co-financed by the EU Innovation Fund with €35 million in grants.
Capacity expansion will support increased natural gas consumption from the planned LNG-to-power conversion at the Vasilikos power station and enable Cyprus to serve as a regional LNG distribution hub for the Eastern Mediterranean.
Energy Security Impact
The expanded terminal will enable Cyprus to meet approximately 85% of its electricity generation fuel needs from imported LNG, reducing dependence on expensive heavy fuel oil and enabling a 35% reduction in power sector CO2 emissions by 2030.
