Croatia: The rest of the capacity of the future LNG terminal booked by PowerGlobe Qatar, SEE Energy News
All the remaining available capacities for the next three gas years have been booked under the 15-year agreement with PowerGlobe Qatar, said LNG Hrvatska the operator of the future liquefied natural gas (LNG) terminal on the Krk island.
The statement from the company said that PowerGlobe Qatar has booked capacities of 0.468 billion cubic meters in each of the next 5 gas years until the end of 2024/2025 gas year, capacities of 0.624 billion cubic meters in each of the following 5 gas seasons until the end of 2029/2030, and capacities of 0.936 billion cubic meters in each of the subsequent five years until the end of 2034/2035.
Following capacity booking by PowerGlobe, the overall booked capacity at the future LNG terminal has reached 1.878 billion cubic meters for 2020/2021 gas year, 2.54 billion cubic meters for 2021/2022 and 2022/2023, 2 billion cubic meters for 2023/2024 and 2024/2025, 2.157 billion cubic meters for 2025/2026 and 2026/2027 and 1.143 billion cubic meters for the following three gas years.
Earlier in June, LNG Hrvatska announced that MFGK Croatia, local company owned by Hungarian Electricity Works (MVM), has leased 6.75 billion cubic meters of capacity of the future LNG terminal. In the gas year 2020/2021, MFGK Croatia leased a capacity of 666 million cubic meters and 1.014 billion cubic meters of annual capacity in the following six years. Previously, INA and HEP previously leased slightly more than 0.5 billion cubic meters, while MET Croatia Energy Trade leased 0.5 billion cubic meters of capacity for three years. Since the entire capacity of the terminal has been leased, the need to collect the so-called SOS fee, namely the fee for security of supply, which in the case of a lease of less than 1.1 billion cubic meters per year would be paid by all gas consumers in Croatia, was definitely eliminated. Last February, Croatian Government adopted a decision on the financing of the first phase of the project for the construction of LNG terminal on the island of Krk. For this purpose, the European Commission (EC) has approved 101.4 million euros in grants, while the state will provide additional 100 million euros from the budget. Up to 50 million euros will be provided during this year or by January 2020 at the latest, while the remaining 50 million will be provided by the end of 2020. These funds will be used for the purchase of a Floating Storage and Regasification Unit (FSRU) vessel and the construction of auxiliary facilities and a high-pressure pipeline. The remaining 32.6 million euros will be secured by state-owned power utility HEP and natural gas transmission system operator Plinacro, which should be provided by the end of February. It is expected that the LNG terminal will be put in operation on 1 January 2021. Total capacity of the FSRU will be 2.6 billion cubic meters.