BRUSSELS: August 01, 2019. The European Commission (EC) has approved plans by Croatia to build a floating LNG terminal at Krk Island in the Adriatic Sea for €233.6 million.
Funding for the construction and initial operation of the terminal, due to open in 2021, will be split between the Croatian state (€100 million); Connecting Europe Facility, managed by the European Commission, (€101.4 million); and the terminal company state shareholders (€32.2 million).
The beneficiaries with 85 percent and 15 percent respectively are LNG Croatia, owned by Hrvatska Elektroprivreda the Croatian state-owned gas and electricity incumbent; and Plinacro, the national gas transmission system operator.
EC Margrethe Vestager, head of competition policy noted: “The new LNG terminal in Croatia will increase the security of energy supply and enhance competition, for the benefit of citizens in the region. We have approved the support measures to be granted by Croatia because they are limited to what is necessary to make the project happen and in line with our state aid rules.”
The new terminal at Krk Island, which is connected to the mainland via bridge, will transport up to 2.6 billion cubic meters per year (bcm/y) of natural gas into Croatia’s transmission network that is also connected with Slovenia, Italy and Hungary, as well as with other EU countries via non-EU Member States such as Serbia and Montenegro.