The European Union will invest €101.4 million in the construction of the LNG terminal in Krk, Croatia. A grant agreement under the Connecting Europe Facility was signed on 18 December 2017. The overall costs are estimated at €383.6 million. Construction of the LNG terminal in Krk will start in February 2018 and should be completed by the end of 2019. The first natural gas is expected to be put into the system in 2020.

The LNG terminal in Krk will operate as an offshore floating storage and regasification unit with a yearly capacity of at least 2 billion cubic meters. It also will allow for anchoring special purpose LNG vessels, refilling LNG into the tanks, storing and reloading.[1]

Construction of the LNG terminal in Krk is a priority project within the framework of the European Commission Initiative on Central and South-Eastern European Energy Connectivity (CESEC), launched in 2015. The primary objective of the CESEC is to guarantee

that all countries in Central and South-Eastern Europe have access to a more varied mix of energy sources, and are properly interconnected to the rest of Europe.[2]

Diversification of natural gas supply through the construction of the LNG terminal in Krk will also improve competitiveness in the region and enhance energy security of the Central Eastern and South-Eastern Europe.

Commissioner for Climate Action and Energy Miguel Arias Cañete said:

“Today's signature shows that the Energy Union is a reality on the ground: we are building missing energy links, uniting markets, and improving security of supply. This investment will not only allow for the supply of natural gas to Croatia and Hungary, it will also increase the diversification of energy sources of Central and South-Eastern Europe, and give an economic lift to the region. With commitments like these, the EU delivers true added value for its citizens.” 

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The gLAWcal Team

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[1] Construction of LNG terminal Krk. European Commission. Available at: < https://ec.europa.eu/inea/en/connecting-europe-facility/cef-energy/projects-by-country/croatia/6.5.1-0018-hr-w-m-16 >.

[2] Energy: Strengthening solidarity between Central and South-Eastern European Countries. European Commission. Available at: < http://europa.eu/rapid/press-release_IP-17-3506_en.htm >.