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Report on Financing Structures for CAPEX Requirements and Investment
Schemes Activity 6: Financing NG Implementation
Report on Financing Structures for CAPEX Requirements and Investment
Schemes
Activity 6: Financing NG Implementation
CYnergy is co-financed by the European Union's Connecting Europe Facility.
The sole responsibility of this publication lies with the author. The European Union is not responsible for any use that may be made of the information contained therein.
Responsible Partner: Ocean Finance - OF
Document Code:
Version: 1.1.
Date of Submission: 30/06/2019
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Document Details
Document History
Contributing Authors
Grant Agreement Number: INEA/CEF/SYN/A2016/1336268
Action Number: 2016-EU-SA-0009
Project Title: CYnergy
Activity: Activity 6: Financing NG Implementation
Sub-activity:
Milestone: Milestone No. 24: Project and Sub-projects CAPEX Definition Milestone No. 25: Financial Structures Development
Version Date Authorized
1.1 30/06/2019
Organisation
DEFA
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Disclaimer
The information contained in this document is confidential, privileged and only for the
information of the intended recipient and may not be used, published or redistributed without
the prior written consent of Ocean Finance Ltd
The opinions expressed are in good faith and while every care has been taken in preparing
these documents Ocean Finance Ltd makes no representations and gives no warranties of
whatever nature in respect of these documents, including but not limited to the accuracy or
completeness of any information, facts and/or opinions contained therein.
Ocean Finance Ltd, its subsidiaries and affiliated companies (as per the Grant Agreement)
and their directors, employees and agents cannot be held liable for the use of and reliance
of the opinions, estimates, forecasts and findings in these documents
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Contents
Executive Summary ........................................................................................................ 5
1. Introduction ................................................................................................................. 6
2. Main project description ............................................................................................. 7
2.1. Marine Works............................................................................................... 7
2.1.1. Jetty…………………………………………………………………………7
2.1.2. Emergency Shelter for the FSRU ................................................... 8
2.2. Floating Storage and Regasification Unit (FSRU) ..................................... 9
2.3. Jetty Borne Pipeline .................................................................................. 10
2.4. Onshore Gas Pipeline ............................................................................... 10
2.5. Pipeline Storage Array .............................................................................. 11
2.6. Onshore Above Ground Installation (AGI) – Metering Station ............... 11
3. Sub-projects description .......................................................................................... 13
3.1. Road Transportation ................................................................................. 13
3.2. Industrial & Commercial Use .................................................................... 13
3.3. Maritime...................................................................................................... 14
4. CAPEX Definition ...................................................................................................... 16
4.1. Main Project ............................................................................................... 16
4.2. Sub-projects………………………………………………………………………..17
4.2.1. Road Transportation…………………………………………………….17
4.2.2. Industrial and Commercial Use…..…………………………………...18
4.2.2.1. Low LNG demand scenario…………………………………18
4.2.2.2. Intermediate LNG demand scenario.….………………….19
4.2.2.3. High LNG demand scenario………………………………...21
4.2.3. Maritime……………………………………………………………………22
5. Conclusion…………………………………………………………………………………….23
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Contents of Tables
Table 1. CAPEX of Main Project (€) ............................................................................. 16
Table 2. CAPEX of Sub-activity: Road Transportation (€) .......................................... 17
Table 3. CAPEX of Sub-activity: Industrial Use-low scenario (€) .............................. 18
Table 4. CAPEX of Sub-activity: Commercial Use-low scenario (€) .......................... 19
Table 5. CAPEX of Sub-activity: Industrial Use-intermediate scenario (€) ............... 19
Table 6. CAPEX of Sub-activity: Commercial Use-intermediate scenario (€) ........... 20
Table 7. CAPEX of Sub-activity: Industrial Use-high scenario (€) ............................. 21
Table 8. CAPEX of Sub-activity: Commercial Use-high scenario (€) ......................... 21
Table 9. CAPEX of Sub-activity: Maritime (€) .............................................................. 22
Table 10. Overall CAPEX – all scenarios (€)................................................................ 23
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Executive Summary
The CYnergy, co-financed by the European Union’s Connecting Europe Facility, Action
provides a holistic approach towards the adoption of Natural Gas (NG) in Cyprus and the
development of a sustainable and fully functional NG market for providing clean and
affordable energy to the end user. The Action, as part of the Orient/East-Med TEN-T
Corridor, takes as a focal point the floating Liquified Natural Gas (LNG) Facility to be
developed in Cyprus and aims at building the main and supporting infrastructures for the
introduction, supply and use of NG by the sectors of transport and energy in Cyprus. As
part of this Action, Ocean Finance Ltd, evaluated the CAPEX definition of the Project as
well as the included Sub-projects under the submission of the respective financing tools.
(Activity 6, Milestone No.24).
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1. Introduction
The main objective of this report is to examine the development of a suitable investment
scheme based on the particular characteristics of the investments proposed under the
previous activities (Activities 3,4,5) and utilise the available and upcoming innovative
financial structures for preparing the business cases of these proposed investments. Taking
into consideration the cost analysis of CyprusGas2EU Project which has been approved as
well as the cost analysis of CYnergy’s Sub-Activities 3.3, 4.3, 5.1-5.2, there has been an
analytical evaluation on capital expenses of the project as a whole.
The CYnergy Project has been separated in the Main Project and the Sub-projects. The
Main Project includes the LNG terminal with all the facilities needed and its CAPEX derives
from the corresponding CAPEX of CyprusGas2EU Project. Furthermore, there are three
Sub-projects, one about Road Transportation, another one about Industrial and Commercial
Use and the last one about Maritime. Each one of these has been fully analyzed, with its
demand analysis and supply chain analysis given, on reports of Activities 3,4,5 respectively.
Thus, this report constitutes the next step, combining all the above results and summing up
the overall CAPEX of the project.
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2. Main project description
The LNG terminal is a critical infrastructure prerequisite for the successful import of natural
gas and the context of Cyprus’ national gas network. Therefore, the main objective of the
proposed project is to create the entry points for natural gas in the country, thus facilitating
its use mainly for power generation purposes.
Based on the strategic planning for the Energy Sector of the Republic of Cyprus, CYGAS
has received from the Council of Ministers a new mandate in order to proceed with the
implementation of a project for the introduction of LNG. As presented in the Business Plan
of CyprusGas2EU Project (TENtec number 277803680), which has been approved, the
necessary infrastructure is expected to include the following:
1. Marine Works: Jetty for FSRU berthing and LNG transfer activities and an
emergency shelter for the FSRU;
2. Floating Storage and Regasification Unit (FSRU) – Gas export system and Loading
Arm (inclusive of; meters, Gas compressors, filters, heaters, venting system, quick
connection, export arm pipelines), permanently berthed in Vassiliko bay;
3. Jetty borne Gas Pipeline (inclusive of; gas pipelines, valves) connecting the FSRU
to the receiving point onshore;
4. Onshore Gas Pipeline (inclusive of; pipeline, inline valves, cathodic protection
systems, civil works), connecting the receiving point onshore to the downstream
delivery point;
5. Pipeline Storage Array (inclusive of; inlet and outlet manifolds, inline valves,
protection systems, civil works), able to store Natural Gas in gaseous form in the
required operational pressure ranges adjacent to Vassiliko power station;
6. Onshore Above Ground Installation (AGI) – Metering Station.
2.1. Marine Works
2.1.1. Jetty
The proposed works include the construction of a trestle/jetty for the permanent berthing,
and mooring as well as the loading/unloading operations, and Ship to Ship refilling
operations of an FSRU.
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The jetty will be located west of the main breakwater of Limassol Port – terminal 2
(Vassiliko), at a distance of about 1,3km. The trestle will run offshore in a north – south
direction for about 750 meters before turning south-west 430 meters to form the FSRU
berth. A future extension of the jetty by another 310 meters, in order to accommodate an
LNGC Carrier is foreseen.
The orientation of the berth will be about 220 degrees north, so that the ships are aligned
into the prevailing direction of wind and waves. Therefore, according to the proposed layout,
the depth at the inner berth is between 15 and 18 meters while the outer (future) berth ends
up being in about 22 meters.
The berth will consist of a loading platform of dimensions 30 meters by 35 meters. The
loading platform substructure and deck is supported by piles. Ships berth against four
breasting dolphins. The breasting dolphins will be equipped with fenders and quick release
mooring hooks to accommodate the LNGC’s spring lines.
There are also six (6) mooring dolphins for each berth, each mooring dolphin equipped with
a quick release mooring hook.
2.1.2. Emergency Shelter for the FSRU
The proposed extension is envisaged east of the existing basin of the Port and includes the
following works:
Dredging to -15m CD over an area of 300.000 m2 in order to create the required
navigational depths. This area includes the navigational approach channel, the
berthing location and the manoeuvring area.
Extension of the existing main breakwater by about 650 meters.
Construction of the leeside breakwater protecting the port basin.
A berthing place on the north side of the new port basin. This berth will be made
up of a group of individual structures consisting of four breasting dolphins, three
mooring dolphins and three mooring points established on the existing land area.
Furthermore, interconnecting walkways and an approach trestle will be constructed.
o Breasting dolphins are equipped with fenders and two of them are equipped
with Quick Release Hooks. The breasting dolphins are arranged symmetrically
about the midship since no loading platform is envisaged. The breasting
dolphins will be supported by driven steel pipe piles.
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o Mooring dolphins will support mooring fittings to secure the vessel’s head,
stern and breast mooring lines. Each mooring dolphin is equipped with Quick
Release Hooks. The mooring dolphins will be supported by driven steel pipe
piles.
o The breasting and mooring dolphins will be connected through walkways.
Walkways are steel bridges.
o A trestle will provide access from the land area to the breasting dolphins.
o Further mooring points will be placed consisting of a concrete base equipped
with Quick Release Hooks.
2.2. Floating Storage and Regasification Unit (FSRU)
Floating Storage & Regasification Units are vessels similar in design to a Floating Storage
Unit (FSU) but they also have on board facilities for regasifying LNG from its liquid storage
facility or from a docked LNG carrier.
On board the vessel is a regasification system, which raises the temperature and vaporises
the LNG back to gaseous phase for subsequent transport on to shore. The vessel is
commonly moored at a specified distance offshore (for safety reasons) allowing operators
to store and vaporise the LNG on ship before sending ashore, commonly via either a sub-
sea pipeline or a pipeline installed along a jetty arrangement.
A typical FSRU vessel normally has a capacity in the region of 130,000m3 to 150,000 m3,
which should be the LNG storage capacity after conversion. The LNG tanks will store the
LNG at -165°C and circa 2barg.
In response to a demand request, the LNG is pumped from the storage tanks of the FSRU
so that LNG enters the Booster Pump Suction Drum (BPSD) and is further distributed to the
regasification trains. Each regasification train will typically comprise the following
equipment:
LNG booster pump;
LNG vaporizer;
Boil-off Gas (BOG) re-condenser.
The number of regasification trains in operation depends on the capacity requirement; it is
considered that a duty/ standby arrangement should be considered.
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2.3. Jetty Borne Pipeline
The pipeline will be above ground for a limited period whilst it is on the jetty. This section
will connect the mooring location of the FSRU with the shoreline. The Natural Gas pipeline
will be mounted on a pipe rack on the jetty. This Jetty will be equipped to handle hazardous
substances.
The pipeline could be subsea from ship to shore-line, however this would add significant
distance when compared to the jetty solution and a Pipeline End Manifold (PLEM) would
be required. Therefore, a jetty based pipeline is preferred.
The jetty should be subject to controlled access and as such the pipeline should not be
exposed to anyone who is not competent to be working around it. This reduces the primary
risk for any pipeline, third party intervention. The arrangement and size of the pipeline on
the rack is yet to be determined, though as per any pipeline there is expected to be no
redundancy in the form a fully-sized spare pipeline. The pipeline itself may be sized to
accommodate a flowrate in excess of the current requirements, thus providing a degree of
redundant capacity, though this is not considered necessary.
The pipeline will be made of suitably specified carbon steel and will be subject to industry
standard coating and protection methods. Beyond this the pipeline system will be stressed
analysed to verify any weak point which can be addressed in detailed design. A suitable fire
and gas detection philosophy shall be put in place to manage the risks associated to the
jetty operation.
2.4. Onshore Gas Pipeline
The pipeline will, once it has left the jetty, be buried using normal trenching techniques for
the remainder of the route up to the Onshore facilities Metering Station. The pipeline will be
designed to accommodate inline inspection; this is a method of monitoring the condition of
the pipeline without needing to de-commission it. This is achieved through the use of a
Pipeline Inspection Gauge (PIG). Using a system such as this requires the pipeline network
to be designed in a certain way, this means including bends that can accommodate the
passage of the PIG and the ability to attach at either end of the pipeline the PIG Launching
and Receiving facilities.
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The pipeline will be directly connected to the storage array. This storage array if directly
connected to the pipeline should be 100% available and will seek to provide a degree of
redundancy to the supply pipeline system.
The pipeline shall be sized for the VPS primary, secondary and tertiary response
requirements with regards to the delivery of electricity to the network. The design to date
has considered the transient requirement which was used along with the maximum and
minimum flow requirements which will allow the pipeline to be sized in order to satisfy
system demands. Currently it is considered that a circa 300mm NB pipeline should satisfy
the minimum project needs, though a larger pipeline may be considered to satisfy flow
demands.
2.5. Pipeline Storage Array
The pipeline array option will involve multiple pipeline lengths connected via a dedicated
inlet and outlet header buried in close proximity to VPS. A large plot of land is required over
which no construction could take place and would normally be controlled land. It is currently
estimated that this land requirement might be circa 40,000 m2.
The current proposal is that of a buried buffer array. It is currently proposed that this will
consist of multiple ‘branches’ connected to the main supply via an inlet header and outlet
header with an inbuilt bypass. Given the current requirements an arrangement featuring
‘branches’ sized at 900mm NB diameter pipeline 300m in length and will operate at the
overall pipeline system pressure. Current understanding is that the regulator requires a
storage volume of 125 T, it is estimated currently that the required equivalent length of
pipeline is circa 6km (circa 20 fingers
2.6. Onshore Above Ground Installation (AGI) – Metering Station
The buried pipeline will terminate prior to the VPS delivery flange in a Metering station. This
AGI will contain the fiscal metering systems, some safety isolation systems and an
Emergency Shutdown Valve (ESDV).
This site shall consist of a scheme of meters installed and maintained to fiscal quality
standards and which will contain built in redundancy. This will most likely be achieved
through a 3 x 50% arrangement. This system will contain Gas Chromatography and Flow
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Computers to supply the necessary data for billing purposes and to assist in maintaining
gas quality standards.
On the outlet of the AGI will be an ESDV that will protect the systems immediately
downstream of this location. This ESDV will be, by design, a single point of failure, in order
for this asset to function as intend it cannot have redundancy. However, it is considered that
this valve will be a sufficient Safety Integrity Level that it should function only in an event
where it must function. This valve will be requested to feature on the strategic spares list.
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3. Sub-projects description
3.1. Road Transportation
Regarding the demand assumptions, calculated in vehicles kilometers (measure of traffic
flow), that were included in the CYnergy’s Sub-Activity 3.1. provided by DDL – Decision
Dynamics Ltd, the key assumption for the estimation of NG demand in the road sector is
the penetration of the LNG/CNG fuel regards with 5% of the estimated total new car sales
in Cyprus in dependence with the mean annual growth of vehicles registrations in the recent
years and their average annual mileage in kilometers.
Based on the abovementioned key assumption, that resulted the final NG demand in
kilograms (kg) for each vehicle category, we can observe a gradual build-up of the NG
demand for road transportation use in Cyprus from 2020 to 2030, reaching the 15% of the
total estimated demand in compliance with the application of the 5% NG penetration factor
to the total new car sales. All the above information is analysed in CYnergy’s Sub-Activity
3.3 (Report on Cost Benefit Analysis of NG in Cyprus for Road Transportation Use).
Thus, the proposed supply chain road transportation users in order to satisfy the estimated
commercial demand entails three (3) LNG tanker trucks with capacity approx. 40m3 and
five (5) LCNG fuelling stations in 2020 that will serve the extrapolated NG demand of the
five main provinces of Cyprus (1 LCNG station in each province in dependence with the
needs of population) while in the reference year of 2030 with the build-up of the demand
two (2) more LCNG refuelling stations will be added in the largest provinces of Cyprus (i.e.
one station in Leukosia Province and one in Lemesos Province, the most populated regions
with the most increased estimated NG demand).
3.2. Industrial & Commercial Use
Regarding the projected NG demand assumptions for the industrial and commercial
consumers, that were included in the CYnergy’s Sub-Activity 4.1. provided by FCN Energy
Logistics Ltd, the key assumption for the estimation of NG demand in the industrial sector
is the full substitution of the competitive to gas fuels in the industry of Cyprus such as Heat
Diesel, Kerosene and LPG fuel. According to the trend analysis of the industrial demand
that was calculated as the full substitution of the competitive to LNG fuel current energy fuel
mix, there were taken into consideration three scenarios of low, intermediate and high
industrial demand for LNG, assuming different penetration factors of LNG for the reference
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years of 2020, 2025 and 2030. All the above information is analysed in CYnergy’s Sub-
Activity 4.3 (Report on Cost Benefit Analysis of NG in Cyprus for Industrial and Commercial
Use).
More specifically, as for the LNG supply chain for industrial users, the road transportation
of LNG fuel will be accomplished via only one (1) LNG tanker truck with loading capacity of
40m3 that will carry out one unload per day from 2020 to 2030 in dependence with the
estimated industrial demand of the low scenario. Under the intermediate scenario of the
industrial demand, the LNG supply chain will entail one (1) LNG tanker truck in 2020 and
another one will be added with one unload per day in order to catch up the estimated
demand. In the event of the high LNG industrial demand, the supply chain will include one
(1) LNG tanker truck during 2020-2024, one (1) will be added in the reference year of 2025
(2 in total) and another two will be added in 2030 (4 in total) with one unload per day for all
of them. Additionally, the other elements of the LNG supply chain for industrial users will be
five LNG storage sites, one in each industrial area of Cyprus from 2020 to 2030 for all
demand scenarios.
Regarding the CNG fuel supply chain for commercial consumers, this will entail one (1)
CNG tanker truck with loading capacity of 40m3 that will perform one unload per day in
dependence with the estimated commercial demand of the low scenario. Under the
intermediate scenario of the CNG commercial demand the road transportation of the CNG
supply chain will be accomplished via only one (1) CNG tanker truck with one unload per
day during all the reference years (2020-2030), as well as, only one CNG truck with one
unload per day will be used for covering the estimated commercial demand in the event of
the high CNG commercial demand in Cyprus. Furthermore, the CNG supply chain for
commercial consumers will include one (1) CNG fueling station from 2020 to 2030 under
the low and intermediate scenario in dependence with the estimated commercial demand
during these reference years. However, in the event of the high commercial scenario, one
CNG station will be needed in 2020 and another one will be added in 2030, when the
demand is estimated to reach 40% of the current commercial fuel energy mix in Cyprus.
3.3. Maritime
The basic criteria for selecting the appropriate equipment is the estimated volume required
to provide LNG, the quantities that can be provided in each refuelling process as well as
the number of daily refuelling procedures. It should be noted that the estimations for the
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daily number of refuelling was based on the overall number of arrivals for the third quarter
of the year, assuming a +30% spike, as it is the worst-case scenario that should be taken
into account in the design process in order to meet all the supply needs. More detailed
information is given in CYnergy’s Sub-Activities 5.1-5.2 (Report on Port of Larnaca and Port
of Lemessos Terminal 2 – Vassiliko LNG Demand and Supply Chain Analysis).
Thus, it has been estimated that four LNG tanker trucks of a capacity of 50 m3 each, should
be utilized in order to undertake the LNG bunkering process in both ports for the years
2020-2025. Since the LNG demand is expected to grow during the years 2025-2030, three
more LNG tanker trucks of a capacity 50 m3 each are also required, in order to handle the
bunker volumes of the largest vessels.
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4. CAPEX Definition
4.1. Main Project
The cost estimations on the infrastructural investments of the main project were delivered
as part of Activity No. 2 – Technical and Operational Design for LNG Facility & Natural Gas
System Development; and more precisely as part of the Sub-Activity 2.1.- Technical Design
& Permits.
Overall CAPEX, based on cost estimations of CyprusGas2EU Project Capital expenses, is
equal to 340,000,000€ and includes:
- Purchase of a second hand vessel (data for a 2002-3 Steam Turbine LNG Carrier
are assumed, but the option of a 2010 Dual Fuel Diesel Electric LNG Carrier could
be assessed).
- Purchase of regasification equipment and conversion of the second hand vessel.
- Marine Works (namely, trestle/jetty construction, dredging, extension of main
breakwater and construction of leeside breakwater, breasting & mooring dolphins’
construction)
- Construction of above ground jetty borne gas pipeline, onshore Above Ground
Installation (AGI) - Metering Station and onshore gas pipeline up to the AGI and
pipeline storage array.
- These expenses include only the tangible assets (construction works and
equipment) of the project. The purchase of the second hand vessel, valued at
approximately EUR 60M is not eligible for a co-financing by the 2017 CEF Energy
Call.
Based on the above, the investment cost is given in the table below:
LNG Facility
FSRU (Purchase & Conversion) 148,720,000
Offshore Pipeline 11,440,000
Local Buffer 11,440,000
Jetty/Tresle Structure 53,500,000
Breasting & Mooring Dolphins 32,000,000
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Loading/Unloading Platforms 16,500,000
Breakwater Extension 41,300,000
Jetty Structure for the Emergency Shelter 1,000,000
Shelter Breasting & Mooring Dolphins 6,100,000
Dredging 12,000,000
Leeside Breakwater 6,000,000
Total Investment Cost 340,000,000
Table 1. CAPEX of Main Project (€)
4.2. Sub-projects
4.2.1. Road Transportation
The estimates include all costs incurred during the implementation period of the project. In
particular, the investment cost of the NG demand scenario includes three (3) LNG tanker
trucks (in the reference year of 2019) and seven (7) LCNG stations during the reference
period of 2019-2043 (5 LCNG stations in 2019 and other 2 will be added in 2030).
Based on the above, the investment cost of road transportation as calculated in Sub-Activity
3.3 is equal to 8,442,000€ as given in the table below:
Road Transportation
Capex for LCNG Stations
LCNG Stations 2019 2030
Ammochostos Province 1,116,000 0
Larnaca Province 1,116,000 0 Lemesos Province 1,116,000 1,116,000 Leukosia Province 1,116,000 1,116,000
Paphos Province 1,116,000 0
Total 5,580,000 2,232,000 7,812,000
Capex for LNG Tanker Trucks (40m3)
LNG Trucks 2019 2030
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Total 630,000 0 630,000
Total Investment Cost 8,442,000
Table 2. CAPEX of Sub-activity: Road Transportation (€)
4.2.2. Industrial & Commercial Use
4.2.2.1. Low LNG demand scenario
The estimates include all costs incurred during the implementation period of the project. In
particular, the investment cost of the low LNG demand scenario includes one (1) LNG truck
and five (5) LNG storage sites during the reference period of 2019-2043.
Based on the above, the investment cost for Industrial Use is equal to 5,226,000€ as given
in the table below:
Industrial Use
Low Scenario
CAPEX for LNG Tanker Trucks
2020
LNG Trailer 150,000
Trucks 60,000
Total 210,000 210,000
CAPEX for LNG Storage Sites
Regas Unit 600,000
Storage Tank 1,816,000
Receiving Facility Installation 100,000
Boiler’s Conversion Cost 2,500,000
Total 5,016,000 5,016,000
Table 3. CAPEX of Sub-activity: Industrial Use-low scenario (€)
Regarding the CNG fuel supply chain for commercial consumers, this will entail one (1)
CNG tanker truck with loading capacity of 40m3 that will perform one unload per day in
dependence with the estimated commercial demand of the low scenario. The CNG fueling
stations and their proposed location will be towards the planned route of gas pipeline serve
the extrapolated NG demand of the largest commercial areas of Cyprus, 1 CNG station
close to Larnaca and Nicosia.
Based on the above, the investment cost for Commercial Use is equal to 1,900,000€ as
given in the table below:
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Commercial Use
Low Scenario
CAPEX for CNG Tanker Trucks
Steel Trailers 100,000
Type 2 Cylinders 160,000
Trucks 60,000
De-Compressors 60,000
Total 380,000 380,000
CAPEX for CNG Stations
Land 300,000
Compressor 200,000
Gas Connection Fees 500,000
Cooler 60,000
Electricity Plant 60,000
Other 400,000
Total 1,520,000 1,520,000
Table 4. CAPEX of Sub-activity: Commercial Use-low scenario (€)
The total investment cost for both Industrial and Commercial Use in low demand
scenario is up to 7,126,000€
4.2.2.2. Intermediate LNG demand scenario
The estimates include all costs incurred during the implementation period of the project. In
particular, the investment cost of the intermediate LNG demand scenario includes one (1)
LNG truck in 2019 and one (1) more in 2030 and five (5) LNG storage sites during the
reference period of 2019-2043.
Based on the above, the investment cost for Industrial Use is equal to 5,436,000€ as given
in the table below:
Industrial Use
Intermediate Scenario
CAPEX for LNG Tanker Trucks
2020 2030
LNG Trailer 150,000 150,000
Trucks 60,000 60,000
Total 210,000 210,000 420,000
CAPEX for LNG Storage Sites
Regas Unit 600,000
Storage Tank 1,816,000
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Receiving Facility Installation 100,000
Boiler’s Conversion Cost 2,500,000
Total 5,016,000 5,016,000
Table 5. CAPEX of Sub-activity: Industrial Use-intermediate scenario (€)
Regarding the CNG fuel supply chain for commercial consumers, this will remain the same
as in low demand scenario and will entail one (1) CNG tanker truck with loading capacity of
40m3 that will perform one unload per day. The CNG fueling stations and their proposed
location will be towards the planned route of gas pipeline serve the extrapolated NG
demand of the largest commercial areas of Cyprus, 1 CNG station close to Larnaca and
Nicosia.
Based on the above, the investment cost for Commercial Use is equal to 1,900,000€ as
given in the table below:
Commercial Use
Intermediate Scenario
CAPEX for CNG Tanker Trucks
Steel Trailers 100,000
Type 2 Cylinders 160,000
Trucks 60,000
De-Compressors 60,000
Total 380,000 380,000
CAPEX for CNG Stations
Land 300,000
Compressor 200,000
Gas Connection Fees 500,000
Cooler 60,000
Electricity Plant 60,000
Other 400,000
Total 1,520,000 1,520,000
Table 6. CAPEX of Sub-activity: Commercial Use-intermediate scenario (€)
The total investment cost for both Industrial and Commercial Use in inrtermediate
demand scenario is up to 7,336,000€
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4.2.2.3. High LNG demand scenario
The estimates include all costs incurred during the implementation period of the project. In
particular, the investment cost of the high LNG demand scenario includes one (1) LNG
tanker truck in 2019, one (1) in 2025 and two (2) more in 2030 as well as five (5) LNG
storage sites during the reference period of 2019-2043.
Based on the above, the investment cost for Industrial Use is equal to 5,856,000€ as given
in the table below:
Industrial Use
High Scenario
CAPEX for LNG Tanker Trucks
2020 2025 2030
LNG Trailer 150,000 150,000 300,000
Trucks 60,000 60,000 120,000
Total 210,000 210,000 420,000 840,000
CAPEX for LNG Storage Sites
Regas Unit 600,000
Storage Tank 1,816,000
Receiving Facility Installation 100,000
Boiler’s Conversion Cost 2,500,000
Total 5,016,000 5,016,000
Table 7. CAPEX of Sub-activity: Industrial Use-high scenario (€)
In the event of the high commercial scenario, one (1) CNG tanker truck with capacity
approx. 40m3 and one (1) CNG station will be needed in 2020 and another one (1) CNG
station will be added in 2030, when the demand is estimated to reach 40% of the current
commercial fuel energy mix in Cyprus.
Based on the above, the investment cost for Commercial Use is equal to 3,420,000€ as
given in the table below:
Commercial Use
High Scenario
CAPEX for CNG Tanker Trucks
Steel Trailers 100,000
Type 2 Cylinders 160,000
Trucks 60,000
De-Compressors 60,000
Total 380,000 380,000
Report on Financing NG Implementation
22
CAPEX for CNG Stations
Land 300,000 300,000
Compressor 200,000 200,000
Gas Connection Fees 500,000 500,000
Cooler 60,000 60,000
Electricity Plant 60,000 60,000
Other Cost 400,000 400,000
Total 1,520,000 1,520,000 3,040,000
Table 8. CAPEX of Sub-activity: Commercial Use-high scenario (€)
The total investment cost for both Industrial and Commercial Use in inrtermediate
demand scenario is up to 9,276,000€
4.2.3. Maritime
The initial investment cost for the four LNG Tanker trucks is estimated to be 1,300,000 €. It
should be noted that the cost estimate is made on constant prices of 2018. As we have
already mentioned above, these trucks will be introduced in the port facilities of Lemesos
Terminal 2 – Vassiliko as a starting point in order to cover the estimated annual LNG fuel
demand for this period for both ports of Larnaca and Lemesos Terminal 2 - Vassiliko.
However, three more trucks will be added in the years 2025-2030 for the needs of these
two ports and the cost of the additional investment will be 975,000 €. The total investment
cost of the LNG tanker trucks for the period 2020-2030 will be 2.275.000 € in accordance
with the estimated build-up of the annual LNG fuel demand as time goes by.
Based on the above, the investment cost as calculated in Sub-Activity 5.2 is equal to
2,275,000€ as given in the table below:
Maritime
CAPEX for LNG Tanker Trucks
2020 2030
LNG Tanker Truck 1,120,000 840,000
Flow Meter Cost 180,000 135,000
Total 1,300,000 975,000 2,275,000
Total Investment Cost 2,275,000
Table 9. CAPEX of Sub-activity: Maritime (€)
Report on Financing NG Implementation
23
5. Conclusion
Summarizing all the above, the overall CAPEX of the Project is shown in the table below,
separated in the three cost scenarios:
Low
Scenario Intermediate
Scenario High
Scenario
Main Project
LNG Facility 340,000,000 340,000,000 340,000,000
Sub-projects
Road Transportation
8,442,000 8,442,000 8,442,000
Industrial & Commercial
Use 7,126,000 7,336,000 9,276,000
Maritime 2,275,000 2,275,000 2,275,000
Total 357,843,000 358,053,000 359,993,000
Table 10. Overall CAPEX – all scenarios (€)
The overall cost is in line with the market data since the supply chain for the Main Project
and each Sub-project is a result of an analytical market demand estimate. All of the above
costs that constitute the total investment cost have been approved through the previous
reports of CYnergy Project or through the cost analysis of CyprusGas2EU Project.