The European Investment Bank is considering a proposal from the Cyprus Organisation for Storage and Management of Oil Stocks (KODAP) to fund a new strategic storage terminal in Vasilikos, on the island’s southern coast. The ΕΙΒ said it would provide €30 million out of the total cost of €40 million. The project would comprise a 210,000 tonne petroleum tank farm for Cyprus’ strategic oil reserves.
“The project aims to improve Cyprus’ energy security by increasing the percentage of reserve oil stocks held in the country. The new facilities will replace the current storage facility in Larnaca, which is no longer fit for this purpose,” the EIB in its website.
The Cyprus Cabinet decided in July 2014 that all strategic reserves which are currently located in Larnaca should be transferred to Vasilikos by 2017, in the wider context of an energy park.