The move, which has been a long-standing demand by Larnaca residents, should be completed early in 2017, Energy Minister Giorgos Lakkotrypis said.

The decisions mean that the organisation for storage and management of oil stocks (KODAP) can now go ahead with the construction of its own storage facility.

“This way we can move the strategic reserves currently stored in Larnaca, and KODAP can also import the stocks it is forced to store abroad,” the minister said.

KODAP keeps 327,700 metric tonnes of fuel in Greece and the Netherlands.

The move will save the state some €63 million and there will be an initial investment of €39 million, the minister said.

He added that denationalising the state’s fuel storage company was not an obligation stemming from the island’s bailout agreement.

“You realise we have two state organisations (KODAP and KETAP) which deal with each other,” Lakkotrypis said. “And because the area where KETAP is currently located is on the coast, the cabinet decision concerns denationalisation and restoration of the area, which will not be used for petroleum products.”

Around 70% of the fuel stored by KETAP belongs to KODAP.

Source: Cyprus Mail