LNG Hrvatska postpones bids for LNG terminal capacity to late June

LNG Hrvatska, the company that is to administer the would-be floating LNG terminal at the Krk island, said yesterday that it postpones the second round for submitting bids for using the capacity of the terminal from early May until late June. The company explains the move with requests on the part of the bidders in the first round for extending the timeframe for preparing bids as they need more time to study local regulations in the gas field. Thus, LNG Hrvatska will open the second round on Jun 22 while it previously was planning to close it on May 6. The company has not announced the results from the first round that ended on April 8 but local media reported that demand was very weak, reaching only 4% of the planned capacity.

The final investment decision for building the terminal should be taken by the end of June, as earlier announced, and will likely depend on the demand for capacities. The project is supported by the EU and the US as it will diversify gas imports. The terminal has projected capacity of 2.6 bcm and is planned to start operations in early 2020. The Krk LNG terminal is expected to cost EUR383.6m, EUR101.4m of which is an EU grant. The owner should finance 30% of the project and the remainder will be borrowed. The government has said it would adopt special legislation to facilitate the project’s development.

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