LNG Croatia Eyes FID in April

LNG Croatia says it plans to take a final investment decision in the project around April 2018, adding that the process for choosing a floating import terminal is underway.

“The final investment decision [FID] is planned for early 2Q 2018; the procurement procedure for selecting the FSRU [floating storage regasification unit] provider is currently ongoing and we are not in the position to disclose any further information at this moment,” a spokesperson told NGW by email January 10. NGW had contacted the venture, because of an unconfirmed report it had already taken FID.

“LNG Croatia will purchase the FSRU vessel, chartering is not envisaged for this project,” the venture insisted January 10. Three months ago it made the same point, adding then that selection of the FSRU provider was envisaged this quarter and that LNG Croatia had received 12 requests to tender.

Last month the EU formally signed a grant of €101.4mn towards the Krk island-based project, which it had committed to co-fund ten months earlier. LNG Croatia CEO Goran Francic also last month said that Croatian electricity utility HEP and gas network operator Plinacro, as LNG Croatia’s current state-owned owners, or else new owners after any recapitalisation, would cover 30% of the project cost; the EU grant would cover another third; and project financing would cover the remaining 37%. 

“Project cost is estimated around €360mn. The project is envisaged as a long-lasting solution that will ensure diversification of natural gas supply as well as the enhancement of security of natural gas supply for central and southeastern Europe and it will be implemented in phases with FSRU as a first phase,” LNG Croatia also told NGW January 10.

Experts have cautioned that LNG Croatia as a project may not succeed, unless Croatia addresses the issue of its high transmission tariffs on gas flows into Hungary.