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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

Report on Financing NG Implementation

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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


Table 2. CAPEX of Sub-activity: Road Transportation (€)

4.2.2. Industrial & Commercial Use

4.2.2.1. Low LNG demand scenario


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


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.


in the table below:

Industrial Use

Intermediate Scenario


2020 2030

LNG Trailer 150,000 150,000

Trucks 60,000 60,000

Total 210,000 210,000 420,000


Regas Unit 600,000



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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.



Commercial Use

Intermediate Scenario




Trucks 60,000


Total 380,000 380,000


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


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.


in the table below:

Industrial Use

High Scenario


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


Regas Unit 600,000




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.



Commercial Use

High Scenario




Trucks 60,000


Total 380,000 380,000


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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


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


Table 9. CAPEX of Sub-activity: Maritime (€)


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.

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