On Wednesday 31 July, the European Commission approved a Croatian support measure for the construction and operation of a liquefied natural gas (LNG) terminal on the island of Krk.
The terminal in question will consist of a floating storage and regasification unit and connections to the national gas transmission network. Thus, from 2021 onwards, it should be able to transport up to 2.6 billion cubic metres of natural gas per year to the Croatian national transmission network.
The investment costs to achieve this goal are estimated at €233.6 million. Thus, the shareholders of the terminal company will invest €32.2 million, the Connecting Europe Facility will contribute €101.4 million and the Croatian State will make a direct financial contribution of €100 million. Zagreb also plants to grant tariff compensation to the terminal operator in the event of insufficient revenue from the terminal’s operation.
After determining that the measure was necessary, proportionate and did not distort competition, the European Commission concluded that it was compatible with EU state aid rules, in particular with the 2014 Guidelines on State Aid for Environmental Protection and Energy. (Original version in French by Lucas Tripoteau)