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    Eni Initials Italy-Croatia Subsea Pipe Accord

Summary

Eni and Croatian INA have initialed an agreement to consider developing a gas interconnector between Italy and Croatia. But would it ever be needed?

by: Mark Smedley

Posted in:

NGW News Alert, Natural Gas & LNG News, Europe, Balkans/SEE Focus, TSO, Infrastructure, , News By Country, Croatia, Italy

Eni Initials Italy-Croatia Subsea Pipe Accord

Eni and Croatian INA signed June 26 a bilateral cooperation agreement to jointly evaluate the opportunity of developing a gas interconnector between Italy and Croatia, but there's scant sign it will be needed.

The initiative aims to leverage existing infrastructure, used until now for offshore gas production activities in the upper Adriatic Sea, to additionally perform gas transport between the two countries. Eni gave no details of how much the project would cost. Nor did INA in its release, which emphasised it would be a two-way pipeline. Both said the accord had the status of a memo of understanding.

"The interconnection will increase the degree of integration, security of supply, competitiveness and sustainability of the Croatian market, as well as of the Italian market, as the infrastructure will be able to operate reverse flows," said Eni, adding that it would furthermore contribute to consolidating Italy's position as a gas hub in Europe.

But flows between Croatia and Italy through an existing Snam-operated onshore pipe are limited: 20.4mn m3 were piped across the border into Italy at Gorizia in January-May 2018, which was ten times more than Italy imported in the first five months of 2017 at the same point (2.4mn m3). Exports from Italy to Croatia at Gorizia in January-May 2018 were even tinier: just 1.2mn m3.

Such a new subsea pipe link might have more potential if the LNG Croatia project to develop a floating import terminal at Krk in northern Croatia is fulfilled; the earliest such a project may open is now 2020.

INA's main shareholders are Hungarian oil and gas group Mol and the state of Croatia. State-owned entities also own the LNG Croatia project.