According to the company, this would save up to €50 million in investment for the Republic of Cyprus, a saving which could be passed onto the Cyprus tax payer, it said.

It also said the VTT Vasiliko terminal could be expanded easily to provide the capacity to store Cyprus’ strategic stocks, which would save Cyprus more than €17 million per year, “which to date the Republic of Cyprus is obliged, based on the European acquis, to spend renting storage space abroad”. 

It also added that the state could be involved in the expansion with little or no contribution, through the Cyprus Organisation for Storage and Management of Oil Stocks (COSMOS-KODAP) and/or the Electricity Authority of Cyprus (EAC). 

“Involvement in this way will give Cyprus control of its compulsory stocks and fully complies with Cyprus’ obligations as provided for all member-states,” VTT said.

“With these proposals, the problems of space for developments in the wider Vassilikos area, can be negated. The space saved could then be made available for the future infrastructure of LNG,” it said.

It is estimated that the construction of the VTT terminal will create over 1,000 jobs, while upon its completion 60 people will be employed from Cyprus to manage its operation. Initially, the terminal will have the capacity to store 345,000 cubic meters of oil (petrol, diesel, jet fuel, fuel oil) and upon completion of the second phase, by the end of 2013, storage capacity will rise to 640,000 cubic meters.

VTT also responded to reports suggesting there was a conflict of interest from the potential participation of the company in the construction and management of the oil storage terminal at the Vassilikos Energy Centre.

VTT said that oil storage terminals, by nature, do not affect competition in a market as the owner/operating company of the terminal is in control of the storage infrastructure rather than the oil stored within it.

“The aim and priority of VTT Vasiliko Ltd (a subsidiary of VTTI) is the development and operation of its private terminal that will be erected in Vassilikos and not any other similar project in Cyprus,” a statement said.

It said the main activity of the private terminal of VTT Vasiliko Ltd which will be constructed in the Vassilikos area, will be storing fuels for companies, the majority from abroad, which do not have commercial operations in Cyprus and are competitors to each other. 

“This demonstrates that there is no issue of monopoly or ‘conflict of interest’ if VTTI is selected to participate in the oil storage terminal at the Vassilikos Energy Centre,” the company said.

However, if requested the company said it would view positively the use of infrastructure from their oil terminal by the Energy Centre.