According to a press release, VTT Vasiliko Ltd and J and P Group announce the signing of a strategic cooperation agreement for the construction of an oil storage terminal at Vasilikos, near the coastal town of Limassol, an investment of 220 million euro that ”will turn Cyprus into an energy hub”.

The construction of the terminal is expected to begin in two weeks and to be completed in 2014.

At the first phase, the terminal will have a capacity of 357K m³ of oil products (Gasoline, Diesel, Jet fuel, Gasoil, MTBE) which will reach 643K m³ with the completion of the second phase.

Within the framework of the project, a marine jetty with four berths will be created. The jetty will extend off-shore 1200m and will include two loading arms per berth per product, capable of loading / discharging 1250 m³/h per product.

For the construction of the oil terminal of VTT Vasiliko Ltd it is estimated that more than 600 new jobs will be created within 2012, whereas another 60 people from Cyprus will be employed to operate and maintain it. Additional jobs will be created in service provision to support terminal and shipping activities.

Through the terminal activities, it is estimated that Cyprus will gain revenues of 18 million euro per year from port fees, while the state will have additional proceeds from taxes paid by companies which will trade their products via the terminal.

VTT Vasiliko Ltd is a company registered in Cyprus, a subsidiary of VTTI B.V.

VTTI is a joint venture of two companies, with investments in oil storage terminals with total capacity of 8.5 million m³.

VTTI’s shareholders are the Dutch energy giant Vitol, one of the world’s largest energy trading companies, and MISC, a leading international shipping company, registered in the Malaysian stock market and owned by the state oil company Petronas.