LNG Croatia to Double Capacity by 2025, Boosting Regional Gas Supply Security

LNG Croatia is poised to significantly enhance its capabilities, setting the stage to double its current capacities to 6.1 billion cubic meters of natural gas annually by August 2025. The LNG Croatia ship recently departed from Omišalj bound for the Kuzey Star shipyard in Tuzla, Turkey. There, a new module designed to increase the re-gasification of liquefied natural gas (LNG) will be integrated, escalating the nominal capacity of the LNG Croatia terminal.

Scheduled to reach Turkey by September 1st, LNG Croatia will undergo comprehensive upgrades until October 10th. This maintenance will encompass the installation of a re-gasification module and the required five-year renewal of the ship’s class, ensuring full operational readiness by the onset of the next heating season when the demand for natural gas typically escalates. While the ship’s capacity will eventually reach 6.1 billion cubic meters annually, this increase will dovetail with the expansion of the Plinacro transport system's capacities.

The re-gasification module, crafted by Wartsila Gas Solutions, demanded an investment of €23 million and was constructed in the Nantong CIMS Sinopacific shipyard in China. Following a public tender, the installation contract valued at €14.6 million was awarded to Kuzey Star Shipyard in Turkey. Consequently, the LNG terminal will achieve its design capacity increase, a project valued at €51.1 million, supported by a non-refundable funding agreement signed in April. This agreement involved key signatories, including Croatia's Minister of Economy, Ante Šušnjar, alongside directors from the Environmental Protection and Energy Efficiency Fund and LNG Croatia.

The project's overarching goal is to bolster the terminal's capacity, thereby enhancing the security and stability of natural gas supplies in Croatia and its regional markets. Financing for this initiative includes €25 million sourced from the National Recovery and Resilience Plan (NRRP), with LNG Croatia covering the remaining expenditures.

On reaching its new capacity, the LNG terminal in Omišalj will deliver volumes surpassing Croatia's total annual natural gas consumption. With Croatia meeting approximately 20% of its consumption needs through domestic gas production, the bulk of the terminal's expanded capacity is earmarked for export to neighboring countries. The terminal's expanded operation aligns with the forthcoming Bosiljevo-Sisak and Sisak-Kozarac gas pipelines, which will collectively enhance Croatia's export capacity. Towards Slovenia, capacities will rise to 1.5 billion cubic meters annually, while exports towards Hungary will increase from the current 1.7 billion to 3.5 billion cubic meters.

The expansion of LNG Croatia’s terminal capacity promises to reinforce natural gas supply security across Central and Southeastern Europe. "Merely five years ago, we were positioned at the terminus of the natural gas supply chain. Today, we are spearheading advancements in this essential sector," remarks Ivan Fugaš, underlining the strategic transformation accomplished through these developments.