Energy Market Forum in Zagreb to Discuss LNG Terminal Project

By 16 September 2016

Does the region have infrastructure necessary to use gas from LNG terminal on the island of Krk?

Natural gas will certainly have an important role to play in the Croatian energy future. That is demonstrated by the fact that last winter saw the end of a continuous decline in gas consumption in Croatia, reports Večernji List on September 16, 2016.

In achieving the vision of low-carbon future in Croatia, realization of the LNG terminal project on the island of Krk will certainly be an important element. Many agree that the floating LNG terminal, which should be constructed on the island, will be a good opportunity for diversification of gas supply for countries of Central and Eastern Europe, which are heavily dependent on Russian gas.

For Croatia, the terminal is a strategic investment project and an important factor in the diversification of natural gas supply. It is believed that the project should be extremely important for the regional gas market as well, since the gas should become cheaper in the long term.

However, there is a question of assessment of real market needs in neighbouring countries (Slovenia, Hungary, Bosnia and Herzegovina, Serbia). So far it is not known which technological solution will be used for the terminal, and consequently we do not know who will be the investor and who will manage the terminal, who will be the supplier of gas, and how much will the whole project cost. And ultimately, does the region have infrastructure necessary to receive liquefied gas from Krk?

What will be the business model of the LNG terminal? Who is willing to share the benefits, but also the costs and risks of the project? Can liquefied natural gas be competitive in the long-term with gas imported through pipelines? Are large regional vendors interested in LNG supplies? These are just some of the issues that will be discussed at the 4th Energy Market Forum regional conference which will take place on 27 September in Zagreb.

Energy Market Forum is a place where the most important market players and prominent experts discuss the development of Croatian and regional energy markets and possible solutions to problems. It is the only conference in Croatia which exclusively focuses on the functioning of energy markets. It was first held in 2013 and has since established itself as a traditional meeting place for representatives of leading companies in the Croatian and regional energy markets, representatives of the competent regulatory authorities, scientific community and government institutions.