Construction of the €200 million terminal is set to begin in January 2011 and will expand the current capacity at Vassiliko to 550,000 cubic metres.

The agreement between VTTI and J&P was signed during the official visit of the President and CEO of the Vitol Group of Companies,. Ian Taylor and the CEO of MISC Berhad Datuk Nasarudin bin Md Idris.

VTTI CEO Rob Nijst said:y “The terminal marks an initial investment of more than €100 million, but we are looking into expanding the terminal capacity from 340,000 cubic metres of storage to 550,000 cubic metres which will increase our investment to more than €200 million”.

Asked about the terminal’s significance for Cyprus, Nijst said “This is an important project for Cyprus. While global trading conditions remain challenging; a world class terminal built and operated in a professional way will provide jobs and potential for long term investment.”

He added: “The terminal will play an important part in supplying regional markets to meet growing energy demand, as well as supplying the local market in Cyprus.”

The terminal will be 100 per cent owned, funded and operated by VTTI and initially will provide around 340,000 cubic metres of storage for gasoline, diesel and jet fuel. In addition to storage tanks, a jetty will be constructed to handle seagoing vessels. Oil products will arrive at the new terminal from the international oil markets and current plans for the terminal are focused on re-exporting to regional markets, as well as supplying the inland market in Cyprus

The construction project will employ around 1,000 people and continue until the end of 2012; 50 will then be needed to run and support the terminal.