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Project Insights

Croatia LNG state aid signals potential profit risk

The European Commission is likely to approve the government aid given to the project, but lack of interest in booking capacity may nevertheless mean that it is under-utilised The European Commission is likely to approve the government aid given to the project, but lack of interest in booking capacity may nevertheless mean that it is under-utilised.
By Silvia Favasuli 14 February 2019 Europe & Russia / LNG 0 33937
The island of Krk, the proposed site for Croatia’s LNG termianl. (Ali Eminov/Flickr)

The key issue: The developer behind Croatia’s planned 2.6 bcm/y LNG terminal took an FID on 1 February, surprising many industry onlookers. The decision came hot on the heels of an agreement for a €100 million grant from the Croatian government.

Interfax analysis: Strong financial support from Zagreb for the proposed Croatia LNG terminal means the project developer faces an anxious wait to find out whether it complies with EU state aid regulations. But although Brussels is widely expected to give the terminal the green...