April the 18th, 2023 - Additional Krk LNG terminal capacities will begin being put into use as of the year 2025 or 2026 following the recent conclusion of a contract with the Norwegians.

As Poslovni Dnevnik/Marija Brnic writes, last year's project to increase the capacity of the Krk LNG terminal is finally starting to become concrete with the now concluded contract for the delivery of an additional gasification module, worth almost 23 million euros.

The contract signed in Omisalj by the president of LNG Hrvatska (Croatia) Hrvoje Krhen and the sales director of the Norwegian company Wartsila Gas Solutions, Kjell Ove Ulstein, will provide a new module, the installation of which will almost double the existing capacities of the Krk LNG terminal. With this additional module, the Krk LNG terminal's overall gasification capacities will rise to 700,000 cubic metres of gas, meaning that it will enable the delivery of 6.1 billion cubic metres annually.

The engagement of the Norwegian company Wartsila Gas Solutions is a continuation of Croatian-Norwegian cooperation because it is also the manufacturer of the existing gasification system on board LNG Hrvatska itself. The technology remains the same, which is why environmental impact studies aren't required, which will speed up the Krk LNG terminal capacity increase project.

The plan is that the production of the module will be completed in 22 months, and it should be installed in the summer of 2025, while additional capacities would be available at the beginning of the 2025/2026 gas year. When signing the contract, Minister of Economy Davor Filipovic emphasizsd that the gas network will be ready at the same time.

Plinacro is already working on the construction of an additional gas pipeline (Zlobin - Bosiljevo), and according to him, the works will start soon, and works on other sections and interconnections with neighbouring countries are also now expected. Filipovic pointed out that the government is also counting on co-financing from EU funds for all parts of this large project.

The President of the Plinacro Management Board, Ivica Arar, expects that the Zlobin - Bosiljevo gas pipeline should be completed in 2025. A construction permit has already been obtained for a new gas pipeline into neighbouring Slovenia, and an activity plan has just been agreed with the operator of the transport system in Slovenia.

Over the coming days, the sixtieth ship is expected to arrive in Omisalj since the Krk LNG terminal began operating, and in which more than 4.9 billion cubic metres of natural gas have been gasified and delivered to the network so far.

For more, check out our dedicated news section.

February 14, 2023 - For the first time in the thirty-year history of the Croatian state, the United States of America has made its way into Croatia's four most important foreign trade partners when it comes to importing goods, all thanks to the import of American liquefied gas.

As Poslovni / Večernji List write, in the first 11 months of last year, goods worth 2.88 billion euros were imported from America, in contrast to the year before, when imports were only 415 million euros. More significant goods imports were recorded only from the traditionally strongest Croatian partners of Italy, Germany, and Slovenia.

The value of goods imported from the USA is seven times higher than that of goods imported in 2021, all thanks to the liquefied gas that ended up in the liquid natural gas terminal in Omišalj.

How much of last year's imported liquefied gas remained in Croatia and how much was exported to other countries is currently impossible to read from the first commodity exchange data because such analyses are published afterward.

It is possible that the gas was going to Hungary and Cyprus because exports to those two countries stand out. However, while the import of expensive liquefied gas from America exploded, the export of Croatian companies to the US decreased by around 9 percent compared to the year before, which is contrary to the general trend in the foreign trade exchange of Croatian entrepreneurs.

The value of merchandise exports in 2022 was 23.9 billion euros, which is 30 percent more than in 2021, while imports increased by 46 percent, to 41.6 billion euros, announced the Croatian Bureau of Statistics (DZS).

The figures are dizzying and are mainly the result of inflation and rising energy prices, and judging by the dynamics with which exports grew; it seems that inflation is also slowing down, writes Večernji list journalist Ljubica Gatarić.

For more, make sure to check out our dedicated News section.

August the 19th, 2022 - The Republic of Croatia plans to position itself as one of the leaders on the new energy map of the European Union (EU), and this will be made possible by the National Energy Efficiency Action Plan for the period from 2022 to 2024 and the decision on the expansion of the LNG terminal on the island of Krk, which the Government made at a recently held session.

As Poslovni Dnevnik/Darko Bicak writes, to speak more specifically, the move regards the decision to build the Zlobin - Bosiljevo gas pipeline and increase the capacity of the LNG terminal on the island of Krk to 6.1 billion cubic metres of gas per year, with the total value of the investment reaching 180 million euros.

European Union money

As pointed out by the Minister of Economy and Sustainable Development Davor Filipovic, this is a strategic decision because it doubles the capacity of the LNG terminal on the island of Krk, and the construction of a new gas pipeline is underway.

"We're doing this in order to strengthen the security of gas supply across Croatia, as well as to position ourselves as a leade when talking about energy in this part of Europe. The total value of the investment stands at 180 million euros, of which 25 million euros will be invested in the expansion of LNG terminal's capacity, and 155 million euros in the expansion of the gas pipeline network," said Filipovic.

He added that European Union money will be used as much as possible in order to finance the investment, with the support of course from the state budget. Prime Minister Andrej Plenkovic also pointed out that this is a strategic and important decision for energy security and for the supply of gas to Croatia, apostrophising the importance of Plinacro's role, as well as the use of measures from the REPowerEU plan.

He assessed that Croatia is grafually becoming a regional energy hub when it comes to the high-quality use of terminals for liquefied natural gas. As an interesting fact, he singled out Germany, which doesn't yet have an LNG terminal of its own, and two such terminals, which should be built by 2024, will together have a capacity of 13 billion cubic metres of gas per year.

As Plenkovic himself stated, this means that one of Croatia's terminals is practically half of the capacity of Germany. The national energy efficiency action plan is extremely important in the context of the response to the current energy crisis and European efforts to reduce dependence on Russian gas following sanctions placed against the country for the invasion of Ukraine.

As explained by Minister Filipovic, in the period from 2014 to 2020, a decline in primary energy consumption was observed across the Republic of Croatia, as was a constant increase in final energy consumption. Such a trend was explained by the penetration of renewable energy sources and the improvement of the efficiency of production facilities in the production/transformation sector of energy, while in terms of immediate consumption, the effect of the implementation of energy efficiency measures could not neutralise the effect of economic trends and the increase in general consumption.

Back in pandemic-dominated 2020, Croatia achieved 18.7 percent lower primary energy consumption (364.6 PJ), i.e. 7.5 percent lower immediate energy consumption (269.5 PJ) compared to the target.

"The backbone of this plan is the provision of financial incentives for the energy renovation of buildings, especially residential ones, both from European Union sources and from the Environmental Protection and Energy Efficiency Fund," said Filipovic.

This plan will also be co-financed and implemented by European Union funds as well as the funds from various financial institutions. In addition to measures aimed at individual sectors and segments of energy consumption, the plan foresees the continuation of implementation of supporting measures, such as energy efficiency planning obligations at the local and regional level, energy audits, not to mention the energy certification of buildings and the proper promotion of energy services.

For more, make sure to check out our dedicated lifestyle section.

ZAGREB, 11 May 2022 - Croatian energy regulator HERA Steering Board chair Danijel Žamboki said at a conference of gas professionals on Wednesday that even in the worst-case scenario regarding gas supply, Croatia would be in a much better position that most EU countries.

"That is so because of the diversification of supply routes, the LNG terminal and domestic gas production, which has been growing," Žamboki said at the 37th international conference of gas professionals, taking place in Opatija on 11-13 May and organised by the Croatian Gas Centre and the Croatian Gas Association.

Recalling that the government in March adopted a set of measures to alleviate the impact of rising energy prices, Žamboki said that the basic task of the regulator was to care for energy producers and protect consumers and that it would continue working on that.

The state secretary at the Economy and Sustainable Development Ministry, Ivo Milatić, said that Croatia was among leading countries in terms of the protection of households amid rising gas prices.

Speaking of the LNG terminal on the island of Krk, he said that it gave Croatia a rare kind of security, "with 800 million cubic metres of gas to enter the gas system from production in the coming year and 1.5 billion cubic metres from the LNG terminal."

The ministry will support a further increase in the terminal's capacity to 6.1 billion cubic metres, he said, noting that that could be achieved in three years' time or sooner.

The director of the Okoli underground gas storage facility, Vlado Vlašić, recalled that the storage capacity had been leased for the next five years and that there was currently no interest on the part of the clients to fill the facility, but that he believed the facility would retain its role and ensure supply stability, thanks to the government's involvement.

Vlašić said that work was underway to expand the storage capacity, which would enable the company to provide additional services in the gas business.

LNG Hrvatska director Hrvoje Krhen said that so far 2.4 billion cubic metres of natural gas had been delivered so far via the LNG terminal at Omišalj on Krk, that 28 LNG tankers had docked at the floating terminal and that around 4 million cubic metres of liquefied natural gas had been delivered.

The LNG terminal supplies gas for around 55% of the market and the gasification capacity has been expanded by an additional 300 million cubic metres of natural gas. The capacity has been fully leased until 2027, and the possibility of further expanding it is being considered, Krhen said.

Plinacro gas transport system operator Management Board member Marin Zovko announced plans for expanding the capacity for shipping gas from the terminal, increasing the capacity of the gas pipelines running to Hungary and Slovenia, and considering a project for an Adriatic gas pipeline grid and connecting to neighbouring countries, such as Bosnia and Herzegovina.

Nikola Mišetić of INA said that own gas production met around 30% of gas needs in Croatia. This year INA will invest more than one billion kuna in research and production, he said, adding that the company was also dedicated to green projects.

Before the opening of the conference, several members of the Green Action protested inside the venue where the event was taking place, carrying banners reading "Gas business is crime" and calling for turning to renewables and energy efficiency as well as reducing the need for gas as much as possible.

For more, check out our politics section.

April the 14th, 2022 - LNG Croatia has made quite the name for itself owing to a new service it offers, making it unique in the world of the LNG industry. With the Russian invasion of neighbouring Ukraine prompting harsh sanctions against that country, nations which relied and still do rely heavily on the import of Russian gas are now busy seeking new ways to meet their gas needs to end their reliance on the aggressor. 

This new LNG Croatia service is definitely something that will place this Terminal's offer more firmly on the map as the situation with sanctions against Russia continues to unfold.

As Poslovni Dnevnik writes, the operator of the LNG Terminal (LNG Croatia) has enabled its users the ability to have a brand new non-standard service provided to them - the reloading of LNG from the FSRU ship to LNG transport trucks, LNG Croatia recently announced.

They stated from LNG Croatia that by providing this service, the LNG Terminal located on the island of Krk has become unique in the world of the LNG industry, since LNG Croatia is the very first to perform the complex operation of the transshipment of LNG directly from the FSRU ship to the tank trucks.

The Terminal's users will be provided with an average of forty appointments per month for the arrival of the LNG trucks, and the company claims that by providing this service, the Terminal in Omisalj has once again proven its significant role in the development of the natural gas market in this part of Europe.

LNG Croatia also informed the public about the increase in the technical capacity of the LNG Terminal. The new technical capacity, ie the maximum capacity of LNG gasification now stands at an impressive 338,000 m3/hour.

For more, make sure to check out our dedicated business section.

March the 15th, 2022 - Krk's LNG terminal contributed enormously to Croatia's export ''cake'' last year, with neighbouring Slovenia becoming the main market for the very first time.

As Poslovni Dnevnik/Marija Brnic writes, double-digit export growth rates, published by the Central Bureau of Statistics (CBS) for the first month of this year (44 percent) and last year (28 percent), used to be just a pope dream, and although there are reasons for joy and many good developments, there isn't much space for any euphoria quite yet.

Such a percentage jump was largely due to the low comparative base, due to the coronavirus-induced lockdown in the first part of 2020 and tumbling oil and gas prices, ie the recovery of the global economy and the price jump in terms of energy costs last year.

However, the manufacturing industry has "accumulated" a record 15.4 billion euros in revenue from foreign markets and there is almost no activity that isn't now growing, and there is some good news for export statistics, too. Two events definitely marked last year, when it comes to exports - the role of LNG Croatia (the LNG terminal on Krk) and the first time in which Slovenia rose to the position of the top Croatian export market.

State statistics have recorded a real explosion when it comes to both electricity and gas exports - in just one single year the jump was as much as 421 percent, and in absolute numbers, more than a billion euros worth of the above commodities were exported.

It seems that the Krk LNG terminal contributed the most, whose imported gas quantities remained here in Croatia, and this released significant quantities of gas from other sources, primarily from Russia, which were then exported to other countries. It isn't clear from the CBS data to which countries these quantities were placed, but a visible trace of their origin is left on the import data, due to the strong growth of imports from the USA, Nigeria and Egypt.

Neighbouring Slovenia, on the other hand, ascended the export throne in the last month of last year, and judging by earlier estimates from the Croatian Chamber of Commerce (HGK), the previous item from the statistical records is also crucial for such a result. In total, goods worth 2.43 billion euros were exported to Slovenia from Croatia, which is an increase of 58 percent when compared to the previous year. Just one year earlier, exports to the Slovenes weakened compared to pre-pandemic 2019 by 5.6 percent.

The neighbouring countries of Slovenia and Croatia are very focused on each other and are, as a rule, each other's third export market, but Slovenian figures are still enviable for Croatia, despite the fact that last year they had weaker export growth and significantly higher import growth than Croatia did. Last year, Slovenian exports increased by almost 20 percent and exceeded 39 billion euros, while imports, with almost 31 percent growth, amounted to 42 billion euros. Croatia was Slovenia's fourth export market, but even with high export growth, it wasn't among the top five markets from which it imports goods.

According to the SBS, Slovenia mostly imports from Germany, Italy, Switzerland, China and Austria, and their main export markets are Germany, Switzerland, Italy, and along with Croatia, Austria. Croatia's five main customers, along with Slovenia, are Italy, which just last year began to return to the first position, which it briefly handed over to Germany in 2020, and in both exports exceed 2 billion euros, while Hungary is in fourth position, with Bosnia and Herzegovina coming in fifth.

Croatia also exports more than a billion euros to nearby Austria, and a record result has been achieved on the markets of neighbouring Serbia and across the Atlantic over in the United States. Trade is also growing with Turkey, and it is interesting to note that, contrary to earlier data, the year ended with an increase in exports to China, but also a decline in imports on an annual basis. It's worth noting that the Republic of Croatia imports the most from Germany, out of a total of 28.3 billion euros, 4.2 billion came from that country, followed by Italy, Slovenia, Austria and then by China.

In the currently two most sensitive markets, Russia and Ukraine, Croatia ended the year before the crisis with 204 million euros of exports to Russia and 58 million to Ukraine, with exports to Russia growing and being the largest in six years, while in Ukraine the placement of goods was by 0.9 percent below the level recorded back during the previous year, and those two years were record years for Croatian exports to Ukraine.

Given the events of the current war and harsh sanctions against Russia, it is certain that the figures on the import side with these warring countries will remain high for Croatia; Last year, 463 million euros worth of goods entered Croatia from Russia, and 44 million came from Ukraine.

For more, check out our business section.

ZAGREB, 23 Feb 2022 - Almost 3.3 million cubic metres of liquefied natural gas has been brought to the LNG lfoating terminal at Omišalj since the start of 2021, when it was put into commercial operation, and more than 1.9 billion cubic metres has been delivered to the Croatian transport system, LNG Croatia says.

In almost 14 months, 23 LNG transshipments have been carried out, and as many LNG transport ships have arrived at the terminal, the terminal's operator adds.

The largest cargo amount arrived from the United States, followed by Nigeria, Qatar, Belgium, Trinidad and Tobago, Egypt, and France.

Contracts on the use of the terminal have been signed with the INA, HEP, MET Croatia Energy Trade, MVM CEEnergy Croatia, and PPD companies.

85% of the terminal's capacity has been leased until 2027.

Responding to a question from Hina, LNG Croatia says that 95% of the gas imported via the terminal has remained in Croatia.

In the first nine months of the terminal's operation, 75% of the regasification capacity has been utilised, the operator says, adding that the financial results for 2021 will surpass the profit planned.

Since the start of commercial operation, there have been no problems or standstills.

In February 2021, not one LNG transport ship docked at the terminal because its users were focused on Asian markets due to a very high demand for LNG and consequently higher prices, the company says, adding that decisions on the commercial terms are made by the terminal's users in cooperation with their suppliers and that the operator's job is only to receive and deliver LNG.

Since early March 2021, all planned ship arrivals have occurred.

Asked if they expect similar market disruptions, the operator says that by building an LNG terminal, Croatia became part of the global LNG market and is subject to all disruptions like markets around the world.

The first LNG tanker, the Tristar Ruby, arrived at the Omišalj terminal off Krk island with 143,000 cubic metres of LNG on 1 January 2021, marking the start of commercial operation.

The floating terminal serves for the reception of LNG ships, gasification and delivery into the gas transport system to reach end users.

For more, check out our business section.

October 27, 2021 - LNG Croatia seafarers at the LNG terminal in Omišalj will need to be vaccinated with at least the first dose by November 1 this year. 

Index.hr reports that LNG Croatia seafarers on board the floating unit for liquefied natural gas (FSRU) at the LNG terminal in Omišalj will have to be vaccinated if they want to continue working at the terminal, announced the Norwegian company Golar, which employs the seafarers at the LNG terminal.

Hrvoje Krhen, director of LNG Croatia, which operates the terminal, confirmed the news received from Golar.

"They must be vaccinated with the first dose of vaccine no later than November 1 this year, and the second no later than January 1 next year. Otherwise, the company will no longer guarantee them employment," Krhen said.

Only seafarers who have recovered from Covid-19 in the last six months and have a valid recovery certificate will be exempted from this obligation.

"Until now, no one without a Covid-certificate could enter the terminal, including the ship. Thus, at each boarding, seafarers also had to have a certificate that they had been vaccinated, tested negative, or displayed a certificate that they had recovered from Covid-19. This is a serious business in which we cannot risk the crew becoming infected and the supply of the natural gas market in question," Krhen told Novi list.

Mario Zorović, president of the Croatian Association of Seafarers' Employment Brokers, whose agency employs part of the ship's crew, says most large shipping companies are expected to introduce mandatory vaccination against Covid-19 soon, without which boarding will not be possible.

"So far, several large companies, such as Stena and Hoegh LNG, have introduced vaccination obligations for all their seafarers. I must point out that most seafarers have accepted the obligation to vaccinate, and a good part of them have already been vaccinated. For example, out of 200 seafarers we employ on Hoegh LNG ships, only one refused to be vaccinated," Zorović said.

There are about 17,000 Croatian seafarers in international navigation, of which as many as 77 percent are officers on ships. Just over 50 percent of them have been vaccinated against Covid-19. Still, the Association expects that number to increase significantly now that companies have started introducing mandatory vaccination as a condition for obtaining or retaining a job.

The Secretary-General of the Croatian Seafarers' Union, Neven Melvan, points out that the introduction of vaccination obligations should not be in the domain of shipping companies but should be decided at the level of the World Maritime Organization (IMO).

For more on business in Croatia, follow TCN's dedicated page.

ZAGREB, 9 July 2021 - The LNG terminal on the northern Adriatic island of Krk has put Croatia on the energy map of Europe and the world, Prime Minister Andrej Plenković told reporters in Sofia on Friday where he was attending a summit of the Three Seas Initiative.

The aim of this initiative is to connect the countries of Central Europe, from the Baltic to the shores of the Black Sea and the Adriatic. The initiative is backed by the United States, and Croatia, as a participant, has a number of projects, Plenković said, citing the LNG terminal on Krk island.

"This year Croatia has opened its LNG terminal at Krk, putting itself on the energy map not just of Europe but of the world as well. We believe that in this way Croatia has made a great contribution to cooperation in the energy sector as part of this initiative," the prime minister said.

The Three Seas Initiative was launched by Croatia and Poland at a meeting in Dubrovnik in the summer of 2016 to promote trade and infrastructure, energy and political cooperation in the region between the Adriatic, Baltic and Black Seas.

The LNG terminal at Krk is important to Croatia because it is connected to an existing terminal in Poland.

Plenković said that Croatia would use funds for projects that would benefit all countries participating in this initiative. 

The participating countries are: Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia.

For more on politics, CLICK HERE.