Croatia readies alternative LNG plan for next year
Croatia plans to complete a feasibility study next year for its own liquefied natural gas terminal (LNG), following a delay in the construction of a similar project by an international consortium, its gas pipeline operator said on Monday, Reuters reports.
"Due to a delay in implementation of an LNG terminal by the Adria LNG consortium, we have kicked off a feasibility study for another option. The study is expected to be completed in the second half of 2013," state-owned pipeline operator Plinacro told Reuters in a written statement.
The alternative project, also planned on the northern Adriatic island of Krk, involves a floating terminal in the first stage, which could later evolve into an on-ground terminal.
Plinacro said the alternative LNG project would have a capacity of between 4 and 6 billion cubic metres (bcm) of gas a year. Croatia currently consumes close to 3 bcm of gas annually.
The Adria LNG consortium - comprising Germany's E.ON-Ruhrgas , Austria's OMV, France's Total and Slovenia's Geoplin - in 2010 postponed a final investment decision until 2013, due to falling gas demand on European markets amid the economic crisis.
The Adria LNG terminal's capacity was seen at up to 15 bcm of gas per year and the cost of the project was assessed at some 800 million euros ($1 billion).
Croatia's slow decision-making process was widely blamed for the project's limited progress before the crisis.
However, after the consortium put the project on hold, Croatia grew impatient and the Deputy Prime Minister in charge of economy, Radimir Cacic, recently said the country could no longer wait for the Adria LNG terminal.
He said the government had offered to buy project documentation for the terminal from Adria LNG.
In an interview with a local daily earlier this month Cacic said Croatia would start from scratch if the Adria LNG consortium refused to sell the documentation.
The consortium declined any comment on the issue and only confirmed that the project was put on hold until next year.
Cacic said last week several investors from Europe and elsewhere had already expressed interest to step in as potential investors.