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Croatia's Krk LNG project faces opposition

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LNG Industry,

Reuters are reporting that Croatia’s plans for a FLNG terminal on the Adriatic island of Krk require a final investment decision by June if it is to hit a 2020 start target.

The project, part of European Union efforts to diversify away from Russian energy imports, is opposed by some environmentalists and residents.

The EU has said it would invest €101.4 million or 28% of the project’s assessed value and the US has also expressed strong support for the terminal which could be used to import US gas.

The terminal’s initial annual capacity is planned at 2.6 billion m3 which is roughly Croatia’s annual consumption.

Croatia produces around a half of its gas consumption and the terminal would also supply central and eastern European countries.

Land and construction permits are expected in April and June, respectively, pending confirmation by the energy minister that the project poses no threat for the environment.

An expert commission is likely to give its opinion on the terminal’s environmental impact next month.

Environmentalists and local communities on Krk island have raised concerns about the impact on sea life and tourism and suggest the terminal be built on land instead, which is more expensive.

The government has recently announced a special law to speed up the construction of the terminal.

Environmentalists and Krk local municipalities have announced a protest against the terminal for 3 March in the nearby port of Rijeka.

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