The first phase of the construction of a Liquefied Natural Gas (LNG) terminal on the island of Krk in Croatia is well under way. Currently held activities include: construction of the jetty and auxiliary systems, construction of the connecting high-pressure gas pipeline and purchase procedure of an FSRU. Work supposed to be finished by December 2020. The LNG terminal will have a regasification capacity of 2.6 billion cubic meters per year of natural gas and should be operational in 2021.
Another important development relates to the European Union antitrust regulators approval of Croatia’s plans to support construction and operation of terminal in June 2019. Croatia decided in January to co-finance project with 100 million euros. The EU is also providing 101.4 million euros for the project from Connecting Europe Facility.
The estimated value of the project, EUR 234 million, includes a specific vessel, that is the Floating Storage and Regasification Unit (EUR 160 million) and the construction of the infrastructure necessary for receiving, storing, reloading and regasification of liquefied natural gas (EUR 60 million). The compensation for the expropriation of the land will need EUR 14 million.
As Croatian gas transportation system is connected with Hungary, Italy and Slovenia, LNG terminal on Krk Island may play and important role for the diversification of gas supply in South Eastern Europe providing landlocked countries with alternative sources. It is possible thanks to steadily developed North South Gas Corridor, which assumes construction of infrastructure interconnections between Central European countries.