The EU will invest EUR 101.4 million (USD 120.3 million) in the construction of a liquefied natural gas (LNG) terminal in Krk, Croatia.
A grant agreement under the Connecting Europe Facility (CEF) was signed at the Energy Council on December 18. The grant contributes to the overall estimated costs of EUR 383.6 million (USD 455.2 million).
“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,” Miguel Arias Cañete, Commissioner for Climate Action and Energy, said.
“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,” Cañete added.
As part of its Energy Union strategy, the EU voiced its committment to building missing energy infrastructure links and ensuring that every EU country has access to at least three different sources of gas.
The construction of the LNG terminal, which will first operate as an offshore floating storage and regasification unit (FSRU) with a yearly capacity of at least 2 billion cubic metres, will increase the security of gas supply in Central and South Eastern Europe, according to the EU.
In September 2017, the project developer of the Krk LNG import terminal LNG Croatia called for bids for the provision of an FSRU, as well as for the design and construction of jetty, connecting gas pipeline and high-pressure installations for the FSRU.
The project operator earlier informed that the technical capacity of the floating terminal will depend on its technical characteristics, however, the maximum annual delivery of natural gas is expected to be 2,6 billion cubic meters in the first stage of the project.