The project for the construction of a liquefied natural gas (LNG) terminal on the Croatian Adriatic island of Krk has been included in the European Commission's priority list and is expected to be completed in 2020 at the latest, Zagreb-based media reported on Tuesday quoting economy minister Ivan Vrdoljak.
According to the project's environmental impact assessment study, the terminal is planned to have an annual regasification capacity of 4.0-6.0 billion cubic metres.
All projects on the Commission's priority list are eligible for co-funding under the EU-backed Connecting Europe Facility (CEF) fund, state-controlled broadcaster HRT quoted Vrdoljak as saying.
Croatia will apply for CEF co-financing for the construction of the terminal next month, the official said, adding that later on it will also seek financing for the construction of a pipeline from the terminal.
Vrdoljak said he expects that the European Commission will come up with around 320 million euro ($431.8 million) for the construction of the terminal, covering up to 50% of the total costs, and that it will also provide half of the financing for the pipeline, which is estimated to cost 440 million euro.
The project for the LNG terminal will soon get a location permit, Vrdoljak also said.
Commenting on the possible construction of a Croatian leg of the South Stream gas pipeline, Vrdoljak said it is not a top priority for the government because the country does not lie on the pipeline's main route and cannot profit from gas transport fees. He, however, added the government has left the option open in case investments in gas-fired thermal power plants and energy-intensive industry boost demand for gas.
"If Gazprom or any other Russian investor wants to invest in Croatia, to build a new power plant or invest in an industry that runs on gas, they would probably buy gas from the pipeline, something to which Croatia is fully open," Vrdoljak said.
Source:SeeNews