Bidding deadline in second Croatian LNG terminal extended

LNG Hrvatska, the company that is to administer the future floating LNG terminal at the Krk island, has extended again the deadline for the submission of bids in the second round of the tender for leasing capacity to Dec 20. Note that the second round of the bidding process was opened on Jun 22 and expired on Aug 3 – then LNG Hrvatska extended the deadline to Sep 28 for the same reasons. The company said that the new extension of the deadline for submission of binding bids has been again requested by the interested parties themselves.

Media have previously reported that 20 companies have showed interest in the non-binding phase of the tender with 12 of them submitting bids in total amount above the initial offered capacity of 2.6 billion cubic meters (bcm) of gas. Recall that the first round of bidding for leasing the capacity of the future LNG terminal ended on Apr 8 — according to unofficial information, only one bid was received, allegedly only by dominant oil and gas company INA with the offer being only for 100 million cubic meters of natural gas per year. The terminal is planned to start operations in early 2020 with its capacity eventually to depend on demand. The Krk LNG terminal, which is to supply gas to countries in CEE in attempt to diversify from Russian energy imports, is expected to cost EUR250m, EUR124m of which is an EU grant. The owner should finance 30% of the project and the remainder will be borrowed. In June the parliament passed a law which cleared the way for construction of the terminal. US energy firms are keen to supply gas to the terminal, but no decision has been taken on supply.

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