articles | 28 April 2014

Semi-industrialisation of Larnaca port to suit energy companies' needs

Alleviating concerned Larnaca residents, the Communications Minister said recently that energy companies seeking permission to work from Larnaca port only need logistics support which implies no heavy machinery.

Communications Minister Demetriades said: “It could be a port for trade and logistics support for these companies because at this exploratory phase they now need no support from a heavy-duty industrial port.” And maybe not even in the coming development phase will they need that even though this will become clearer at a later stage, Demetriades said.

He made clear the government does not want Larnaca port to turn industrial but “we do not want a useless port, either”. Demetriades blamed ‘incorrect’ information over the recent strong protests by the town’s municipality and tourism officials who were backed by Mayor Andreas Louroutziatis. The protests came after US Noble Energy firm asked government permission to transfer operations to Larnaca port from that in Limassol where they were based for a year. 


Italian energy giant ENI’s sub-contractors are already based at Larnaca port and the protesters’ fear is that their envisioned tourist development for Larnaca will ultimately be affected. 
Residents also fear the town’s environment will be endangered. 


Louroutziatis was unavailable for comment Friday but an insider said: “I’m afraid we have no choice but to say yes (to Noble). It’s a fait accomplis decision.”
 The insider added: “At least they (the government) have promised to carry out a thorough environmental study before a licence is granted. And maybe it will create job opportunities that Larnaca badly needs”.

Nonetheless, the Minister dismissed criticism that the government will impose decisions on Larnaca. Or that the Americans will get what they want because this is what they are used to. “There are no imposed solutions. And Noble won’t be getting whatever they want. What Noble want is to set up their own infrastructure in Larnaca through their own sub-contractors,” Demetriades said. “They told us that it (the transfer) was an issue of both cost, operations and logistics. It suits them better to operate from Larnaca rather than Limassol because it is closer to the airport and it is a less busier port; they can work better,” he added.

Plus, Noble and ENI are already collaborating and have synergies between the two companies, he also said before citing as an example the use of the same mud plant.
Demetriades also wondered how many cruise ships or marina tourism Larnaca could attract to counter the benefits of part of the port turning semi-industrial.

Source: InCyprus

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