Austrian oil and gas company OMV AG (OMV.VI) said Wednesday Croatia's government has confirmed the Island of Krk as location for the planned Adria liquified natural gas terminal, and that construction will commence at the end of 2009.
Total investment costs of the LNG terminal, which is being build by an OMV-led consortium that includes German companies E.ON Ruhrgas, a unit of E.ON AG (EOAN.XE), and RWE AG (RWE.XE), France's TOTAL S.A. (TOT) and Slovenia's GEOPLIN, will be EUR800 million, OMV said.
"The new LNG terminal will benefit the entire region via the expansion of the gas supply. Today's decision will also encourage the further development of the consortium and an agreement regarding the participation of Croatian partners can also be expected in the near future," OMV said in a statement.
The Adria LNG in Krk will be built for LNG tankers with a combined volume of up to 265,000 cubic meters and have an
annual production capacity of approximately 10 billion cubic meters,OMV said. Start-up of production at the facility is planned for 2014, it said.