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Adria LNG gets environmental approval

LNG Industry,

Croatia’s Ministry of Environmental Protection, Physical Planning and Construction has published its decision to allow the construction of the Adria LNG terminal on the Adriatic island of Krk. The decision went in the project’s favour because it was decided that the project was environmentally acceptable with the application of environmental protection plans and a programme of monitoring the state of the environment. The decision has taken more than a year to go through and is essential for the resumption of the development. Adria LNG is now expected to apply for a development permit soon.

Adria LNG is made up of a consortium of European firms, including E-On Ruhrgas, Total, OMV, and Geoplin. Croatian firms INA, Plinacro, and HEP will join later this year and take a 25% stake in the project. The project is part of plans to diversify Europe’s gas supply routes and supply Central and South-east Europe; at full capacity the terminal is expected to be able to handle 15 billion m3/yr.

The project had been moving slowly but has been speeded up as foreign investors, who are key to getting the project off the ground, were concerned about competition from another terminal, which is planned on the Italian side of the Adriatic. There has also been concern expressed over the fact that Croatia has joined the proposed South Stream gas pipeline, but the Croatian government has stated it is still committed to the Adria LNG project.

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