Croatia to build four natural gas pipelines worth $566m

The nation will be able to supply gas to its neighbours Hungary and Slovenia.

Alfie Shaw April 18 2024

The Croatioan Government has announced plans to build four natural gas pipelines worth €533.1m ($566.4m) to improve the country’s gas security and facilitate deliveries to neighbouring Hungary and Slovenia.

The projects include the construction of a 122km pipeline from Bosilijevo to Sisak to Kozarac and a 36km pipeline from Lucko to Zabok, the country’s economy minister Damir Habijan said during a weekly cabinet meeting.

The pipelines will also enable the expansion of the liquefied natural gas (LNG) terminal on the Croatian Adriatic island of Krk.

According to Croatian publication Poslovni Dnevnik, the construction of the pipelines will significantly increase gas transportation capacity to Slovenia and Hungary. The publication anticipates that it will lead to the transportation of 1.5 billion cubic metres (bcm) of gas annually to Slovenia and 3.4bcm to Hungary, compared with current capacities of 260 million and 1.7bcm, respectively.

The total length of the four pipelines will span 220km, and they should be built by mid-2026.

The pipelines will feature bidirectional gas flow capabilities and integration into Croatian gas company Plinacro’s gas transport network management system.

Habijan told Poslovni Dnevnik that the signing of the contract is of “great importance” in ensuring Croatia’s energy security following Russia’s full-scale invasion of Ukraine in 2022. The project as been funded as part of the REpowerEU plan, which aims to enhance energy independence and supply source diversification in the EU.

Ivica Arar, Plinacro’s board president, expressed gratitude to the government for securing grants for the project, noting that the investment will not impact gas transportation tariffs. Arar also reiterated that the project will help reduce Croatia’s reliance on Russian gas and improve security of supply in Croatia, as well as in neighbours Hungary and Slovenia.

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