Croatia LNG Terminal Set to Expand in Potential Boost to Ukraine

Croatia plans to expand capacity at its sole liquefied natural gas terminal by almost 30%, potentially boosting energy supplies to Ukraine.

(Bloomberg) — Croatia plans to expand capacity at its sole liquefied natural gas terminal by almost 30%, potentially boosting energy supplies to Ukraine. Commercial capacity at the terminal, situated on the Adriatic island of Krk, is set to increase by 1 billion cubic meters a year to 4.5 billion a year in early 2027, LNG Croatia Managing Director Ivan Fugas said in an interview. “We plan to hold an auction for increased capacity in the first quarter next year, with the contracts lasting until 2040,” Fugas said in Zagreb.

“Our terminal’s expansion could best serve Ukraine.” Several countries in eastern Europe have said they’re looking for more options to import LNG in an effort to diversify supplies, lower prices and boost energy security. Ukraine, in particular, relies on shipments from the European Union when demand spikes in winter and when Russian attacks disrupt its own output.

“LNG Croatia’s prices are among the lowest in Europe, especially if you make a comparison on the basis of joint terminal and pipeline costs,” Fugas said. “If in the auction next year we sell all the capacity, we may consider adding even more capacity, but that decision has to be made at the state level.” The company’s existing customers, which include local energy firms and a couple of Hungarian companies, have already booked capacity until 2036, according to Fugas.

About two-thirds of that gas will come from the US, around 11% from Trinidad and Tobago and about 9% from Algeria, he said. “The war in the Middle East so far hasn’t affected deliveries at all,” Fugas said, though “that could change if the situation persists in the long term.” —With assistance from Elena Mazneva and Slav Okov.