Oil Report

Croatia's Krk LNG terminal meets environmental requirements

    ZAGREB, April 13 (Reuters) - A planned liquefied natural gas
(LNG) terminal on the island of Krk in the northern Adriatic
meets environmental requirements, the company leading the
project said on Friday.
    "The energy and environmental protection ministry made a
decision that the terminal is acceptable for the environment.
The decision is based on an environmental impact study completed
this year," Croatia's LNG Hrvatska said on its website.
    A final investment decision is expected before the end of
    Croatia plans, with help of the European Union funds, to
build a floating LNG terminal to begin operations in 2020. 
    Some municipalities and environmentalist groups oppose the
plan, arguing it could damage the environment and hurt tourism.
    The government is devising a special law to speed up work on
the terminal which over time could develop, depending on demand,
into a land-based facility.
    The terminal is part of EU efforts to diversify away from
Russian energy imports.
    Brussels has pledged to provide 101.4 million euros ($125
million) or 28 percent of the value of the project.
    Initial annual capacity is planned at 2.6 billion cubic
metres (bcm) which is roughly Croatia's annual consumption. 
    Croatia produces around a half of its gas consumption and
the terminal would also supply central and eastern European
    Between now and the end of June, Croatia plans to strike
agreements with several, mostly foreign, firms on using the
terminal's capacity and to complete a financing plan with
potential investors.
    In early March, opponents to the terminal staged a protest
in the city of Rijeka and said they would apply all legal means
to block the project, but their further possible steps are still
    ($1 = 0.8118 euros)

 (Reporting by Igor Ilic; editing by Jason Neely)