Politics

First Compressor Station in Croatian Gas Transport System Put in Operation

By 17 January 2020

ZAGREB, January 17, 2020 - The first compressor station in the Croatian gas transport system was formally put in operation on Friday, with Prime Minister Andrej Plenković saying that this investment marked a strategic step that would change Croatia's position on the gas supply market.

The compressor station at Velika Ludina, about 60 kilometres east of Zagreb, is the technologically most complex structure in the Croatian gas transport system. The gas pipeline operator Plinacro has invested 209.5 million kuna (28.3 million euro) in the project, launched in mid-August 2018.

The compressor station will increase gas supply security and enable bi-directional capacity at an interconnection with Hungary, thus enabling the transport of gas from the LNG terminal on Krk island to Hungary and third countries.

Prime Minister Plenković said that this installation, given that it enables bi-directional gas transport, gave a new, strategic dimension to energy and gas supply security in Croatia and opened up new possibilities for cooperation with Hungary and other countries in central and eastern Europe.

"This project also gives meaning to the LNG terminal project on Krk island, which is of paramount importance politically and strategically," the PM said.

Plenković said that the Velika Ludina project showed that Plinacro had a strategic role and was part of both the national critical infrastructure and the European critical infrastructure. He added that installations like this were concrete examples of strengthening the energy infrastructure in Croatia and Europe.

The investment is in line with EU regulation and the goals of the Croatian energy development strategy. Plenkovic said he expected Plinacro to also invest in other projects relating to energy security, particularly in natural gas. As a positive example, he mentioned the construction of a new gas storage facility in Grubišno Polje, about 130 km east of Zagreb.

Asked by the press if he was worried about the currently modest interest in the lease of the LNG terminal capacity, Plenković said that this was a strategic project which had its purpose and that the issue of lease would be dealt with as the project neared completion, citing ongoing talks with Hungarian companies.

Plinacro's CEO Ivica Arar said that the company had begun work on a delivery gas pipeline for the LNG terminal on the Omišalj-Zlobin section.

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