PM: Croatia would greatly benefit from LNG terminal

Prime Minister Tihomir Oreskovic said on Thursday that the LNG terminal on Krk island would be of great benefit to Croatia, adding that he had not met with representatives of a Canadian consortium who earlier in the day expressed their intention to build the terminal and an energy hub on the island.

Asked at a press conference after a government meeting whether the government supported the consortium's plan and whether it overlapped with its own plan regarding the LNG terminal in Krk, Oreskovic said that energy was one of the key areas and that it was necessary to develop a new energy strategy as soon as possible.

Oreskovic said he had had two meetings about the LNG project, but not with the Canadian consortium. He had met with representatives of Lithuania and former Polish President Donald Tusk, who told him that the price of gas fell by 30 percent as soon as they launched LNG projects.

Oreskovic said that the LNG terminal would be a great bonus for Croatia. "This investment, and I think it will be a floating terminal, will accelerate our entry onto the market," he said and added: "Europe is looking for a diversification (of supply routes) and I think we can play a major role for Europe in this regard."

A group of foreign investors led by the Canadian-based Pulsat Global Capital Inc. and BSH Group, which aim to build a Krk energy hub worth EUR 4.7 billion and employ 1,800 people, said on Thursday that the process of purchasing land for that purpose was nearing completion and that they had called on the Croatian government to support their project.

The Croatian government plans to build an LNG terminal on the same spot through the LNG Croatia company, which said that the Canadian investors failed to apply for its tenders and thus express their interest in the project.

The foreign investors said that the government could not build on someone else's property.

Last update: Tue, 28/06/2016 - 17:51

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