European Investment Bank Considers Financing for Cyprus LNG Facility

The European Investment Bank, the EU finance organization, says it would consider investing in a liquefied natural gas (LNG) terminal which Cyprus plans to construct.

Discovery of natural gas fields off the Mediterranean island could help to ease a grim economic outlook after authorities had to close one bank and seize savings in a second in return for €10 billion in aid from the European Union and International Monetary Fund in March.

Authorities have said they will go ahead with the construction of a liquefied natural gas plant on the southern coast, hoping to process Cypriot gas, and also potentially gas discoveries from neighbouring states like Israel and Lebanon with exports from around 2020.

"If that is the decision of Cypriot colleagues and friends then we would be open, to have the necessary due diligence from the banking point of view and from the technical point of view," EIB President Werner Hoyer told Reuters. He was speaking at the signing of a new €100 million investment loan to Cyprus. 

The Cyprus Mail said yesterday's ceremony brought to €300m the amount of loans currently from the EIB.

The EIB has also been actively involved in funding the introduction of technology to the island allowing a future switch from now fuel-fired generators to those running on natural gas.