Croatia to spend EUR 100 million for Krk LNG

The government of Croatia announced that it will spend EUR 100 million from the state budget for the first phase of the construction of the Krk LNG terminal in 2019 and 2020. 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), while the compensation for the expropriation of the land will need EUR 14 million.

In 2017, the European Commission approved a EUR 102 million grant for this floating LNG terminal of Krk, a PCI project.-

The remaining amount of 32.6 million will be provided by the founders of the LNG Croatia company, the HEP national electricity provider, a CEEP member, and the Plinacro gas network operator.

Energy and Environment Protection Minister of Croatia, Tomislav Coric, said: "The implementation of the LNG terminal should be perceived through its security component and through its geopolitical significance for Croatia and the European Union". He added that the LNG Krk project remains the government's dominant energy project.

The LNG Croatia company has received binding offers for the lease of 520 million cubic metres of gas from the future LNG terminal on Krk and two conditional offers for the non-binding lease of 300 million cubic metres, the company said in mid-December.