Croatia sees expanded LNG terminal operational in three years
Date: August 24th 2022
The project to double the capacity of Croatia's LNG terminal and to extend the pipeline connection for transporting this gas should be completed in three years, the economy ministry said on Tuesday.The government decided last week to double the capacity of the floating terminal on the northern Adriatic island of Krk to 6.1 bcm of gas annually from the current level of 2.9 bcm in an effort to turn Croatia into a regional energy hub that would supply LNG to neighbouring countries. Croatia consumes around 2.9 bcm of gas a year.
However, this expansion project does not include a new FSRU vessel.
“The idea is to incorporate an additional regasification train on the existing vessel,” the economy ministry said in an e-mailed statement to Montel on Tuesday.
A floating storage regasification unit (FSRU) is a special type of ship equipped with storage tanks and equipment for loading and unloading LNG.
The expansion of the Krk terminal is an investment worth EUR 25m, the government said. Gas TSO Plinacro will construct a pipeline link between Zlobin and Bosiljevo to transport gas to other countries, like Slovenia or Hungary, an investment worth EUR 155m.
The economy ministry is confident that there will be no problem finding customers that would book the capacity of a larger floating terminal.
“Taking into account the current geopolitical situation and the European Union’s plans to phase out consumption of Russian gas, it is virtually certain that interest in using the Krk terminal’s capacity will be high,” it said.
Currently there is an LNG supply crunch on the global level amid efforts of many countries to obtain sufficient quantities of gas. EU countries are now competing with certain Asian countries, like South Korea or Japan, to secure sufficient LNG deliveries as winter nears.
Despite that, Croatia is not concerned about the prospects for future deliveries of LNG to the Krk terminal.
“In line with the EU common policy and the REPowerEU energy plan, there are activities on the EU level to increase the supply of LNG, so we do not expect problems in the future,” the economy ministry added.
Meanwhile, the ministry did not comment on the question of whether a new environmental impact study is needed prior to expansion of the terminal’s capacity. Croatia's leading environmental protection group Zelena Akcija (Green Action) warned that such an assessment is a legal obligation.
This article is available also in Slovene.