China delivered the country’s first floating storage and regasification unit (FSRU) vessel for liquefied natural gas (LNG) on Tuesday, according to China Ship News. The vessel will serve China-EU energy cooperation under the Belt and Road Initiative in Cyprus, marking another breakthrough for China’s shipbuilding industry.

The vessel was built by COSCO Shipping Heavy Industry Co (COSCO Shipping) based on a Moss-type LNG carrier equipped with five Moss-type containers and advanced equipment. The vessel can store a maximum of 137,000 cubic meters of LNG, according to the report.

After delivery, the vessel will be deployed in a Chinese company-constructed LNG terminal program at Vasilikos Energy Park on the south shores of Cyprus and will be used until 2044.

The LNG terminal program is the biggest energy project ever undertaken in Cyprus and is an important component of Cyprus’ national energy strategy. The program is expected to reduce Cyprus’ carbon emissions by 30 percent and lower the cost of power generation by 15 to 25 percent. It will further facilitate the country in meeting the EU’s standards for carbon emission reduction, as mentioned in the report.

Moss-type LNG carriers are being phased out in the global LNG transport market due to their limited capacity and high construction costs. The business of refitting FSRU vessels from old Moss-type LNG carriers has potential growth in the international market, and COSCO Shipping’s latest delivery lays a strong foundation for further exploring this market, the report noted.