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Agreement on the strategic project of the LNG terminal in the Ministry of Economy: construction of a gas pipeline for energy independence of Croatia

The Ministry of Economy and Plinacro signed an agreement on the implementation of a strategic LNG terminal project, including the construction of a gas pipeline to expand capacity and transport gas to Central and Eastern Europe.

Agreement on the strategic project of the LNG terminal in the Ministry of Economy: construction of a gas pipeline for energy independence of Croatia
Photo by: mingo.gov.hr/ mingo.gov.hr

On Friday, July 19, at the Ministry of Economy, an important Agreement was signed on the preparation and implementation of the strategic project entitled "Supporting Infrastructure for the Strategic Investment Project of the LNG Terminal." The signing was conducted by Minister Ante Šušnjar and the President of the Management Board of Plinacro d.o.o., Ivica Arar, in the presence of representatives of the Ministry.

This project aims to expand the capacity of the LNG terminal through the further development of the gas transport system. It is planned to transport gas from the terminal to other countries. The Omišalj-Zlobin pipeline will be connected to the Zlobin-Bosiljevo, Bosiljevo-Sisak, and Kozarac-Sisak pipelines, forming the main evacuation pipeline that connects the LNG terminal on Krk with the countries of Central and Eastern Europe and Ukraine. The construction of the Lučko-Zabok pipeline is also planned to increase the gas flow to Slovenia. A total of four pipelines with a total length of 216 km will be built, and the value of the project is 533 million euros excluding VAT.

Minister Šušnjar emphasized the importance of increasing the capacity of the LNG terminal on the island of Krk for positioning Croatia as an international energy hub.

Croatia's Energy Independence
Minister Šušnjar stated: "This project will further ensure Croatia's energy independence, as well as the continuity and security of natural gas supply for households and businesses in Croatia, as well as in other EU member states. Such projects contribute to positioning Croatia as an international energy hub. It is also important to highlight the development of future decarbonized infrastructure, with all major interconnection and transport pipelines being ready for hydrogen transport in the future."

The President of the Management Board of Plinacro, Ivica Arar, emphasized that the pipeline construction project is financed from the National Recovery and Resilience Program, with the aim of strengthening the gas infrastructure. The project includes the construction of four pipelines: Zlobin-Bosiljevo, 58 km long; Bosiljevo-Sisak, 101 km long; Kozarac-Sisak, 21 km long; and Zabok-Lučko, 36 km long. These pipelines will increase the capacity of the LNG terminal on Krk and transport 6.1 billion cubic meters of gas annually to Croatian consumers and to Hungary and Slovenia.

Construction and Financing
"Thanks to timely preparatory activities and obtained construction permits, I can proudly state that we have already started the construction of the Zlobin-Bosiljevo pipeline and are launching public tenders for pipes, equipment, and works for the remaining three pipelines. We have done everything necessary to complete the work by mid-2026, despite the short planned construction periods," said President Arar.

The Agreement comes into force on the day the Government of the Republic of Croatia adopts the Decision on declaring this project a strategic investment project of the Republic of Croatia.

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Creation time: 20 July, 2024

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