The European Commission has found Croatian plans to support the construction and operation of an LNG terminal on Krk Island to be in line with EU State aid rules, an EU Commission press release said on Wednesday.
The measures approved Wednesday will support the construction and operation of a floating LNG terminal, consisting of a floating storage and regasification unit (FSRU) and the connections for Croatia's national gas transmission network, the press release said.
"The new LNG terminal in Croatia will increase the security of energy supply and enhance competition, for the benefit of citizens in the region. We have approved the support measures to be granted by Croatia because they are limited to what is necessary to make the project happen and in line with our State aid rules," said European Commissioner Margrethe Vestager.
The LNG terminal will transport up to 2.6 billion cubic meters of natural gas per year into Croatia's national transmission network as from 2021.
Croatia notified the Commission of the state's €100 million direct financial contribution for the terminal, as well as the granting of a tariff compensation or security of supply fee, both of which fall under State aid under EU rules.
The Krk LNG terminal is on the list of European Projects of Common Interest since 2013, marking its strategic importance for the diversification of natural gas supplies into central and southeastern Europe.
The LNG terminal will deliver gas to the Croatian national transmission network, which is connected with Slovenia, Italy and Hungary, as well as with other EU countries via non-EU member states, including Serbia and Montenegro.
By Gokce Kucuk