ZAGREB: Croatia is likely to take a key step towards building a floating liquefied natural gas (LNG) terminal in the northern Adriatic in early 2018, a senior official at the company managing the project said on Thursday.
Croatia, which consumes about 2.5 billion cubic metres (bcm) of gas a year, hopes to supply its own market as well as central and eastern European countries from the terminal, which will receive gas from places such as Qatar and the United States.
The European Union has put the terminal on the island of Krk on its list of projects of common interest since it aims to diversify sources of supply and reduce dependence on Russian gas. Brussels is putting in 101.4 million euros ($115.7 million), or 27.9 percent of the project's assessed value.
"By the end of February next year we see a final investment decision while at the beginning of 2018 we're also expecting to have a definite figure on the level of demand," said Andreja Ana Lopac, Leading Expert at LNG Hrvatska.
The company was founded by state power board HEP and gas transport operator Plinacro to manage the LNG terminal project.
"We have already chosen preferential partners for talks on investment in the terminal. Now we are also in a binding stage of the so-called open season or expressing interest for the terminal's capacities," Lopac told Reuters in an interview.
She said the LNG Hrvatska expected the floating terminal to be up and running in early 2020.
"At the beginning, given the current transport network capacities, the terminal will receive some 2.6 bcm of gas a year, but depending on demand and investments in transport infrastructure, it could be gradually increased first to around 3.5 bcm and eventually up to 7.0 bcm a year," Lopac said.
Plinacro can transport about 2.6 bcm of gas a year at the moment and its investment in infrastructure to boost capacity will depend on the level of demand for LNG from Krk.
"Even though we have opted for a floating terminal for now, it is not excluded that at a later stage, if demand rises, a land-based terminal could be constructed," Lopac said.
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