Croatian LNG terminal to provide stable gas supplies for Europe

After Russian natural gas supplies to the EU were cut off, Croatia's only liquefied natural gas, specifically the LNG terminal on the island of Krk, became the most important energy facility for the country. 

But now, Croatia, together with the EU, plans to expand the importance of LNG and provide more natural gas to Slovenia and other countries in the region. 

Heavy machines are already engaged in the construction of one of four future gas pipelines in Croatia. Those should connect the LNG terminal in Krk with other parts of Croatia, then Slovenia, and in the future both Hungary and Bosnia and Herzegovina. 

The entire Croatia natural gas network is undergoing an expansion overhaul, as Robert Bošnjak, a board member of Croatia's gas monopoly Plinacro, told CGTN.

He said the growth was "not only of our output capacity for Slovenia, but also an expansion on the terminal on the island of Krk. It is in the extension phase. Its capacity will be expanded from the existing 2.9 to 6.1 billion cubic meters of natural gas."

The ships carrying LNG dock in the terminal at the Krk island. There the liquefied gas is converted back to its gas state before being pumped through pipes to consumers. 

Most of the LNG arriving here is from U.S. and Middle Eastern sources. It's a far cry from the situation before the pre-Ukraine crisis.

"Here in Croatia, for the past around 19 years, we had a struggle between U.S. and Russian influence," said Boris Rašeta, an energy analyst from Express Magazine. "One was pushing against the construction of the LNG terminal, and the U.S. insisted a lot for that LNG terminal to be built. Now, after the crisis initiated by the war in Ukraine, this terminal appeared to be useful."

Yet, some are saying that this is just a backup project, a temporary patch to the EU gas crisis. They say that LNG is consistently more expensive than pipeline-delivered natural gas.

Skeptics include former Croatian Deputy Prime Minister Ljubo Jurčić. "I hope that this war will end and that the collaboration between Russia and Europe will continue," Jurčić said. "Russia is a natural supplier of gas to Europe. And this would stay as an alternative supply mode for some unexpected situations, which I hope won't happen."

There is talk of a potential restart of Russian pipeline gas to Europe as part of a possible Ukraine-Russia peace deal, yet such a resumption would be complicated and take time. 

While Russian gas deliveries are not resumed, for Croatia and many other EU countries in the region, the LNG coming from the Krk terminal is the only way to access gas. 

Croatia and the EU are investing in this project to build its energy security through diversifying natural gas supplies. They say they will make sure to see it through to the end, regardless of the prospects of ending the war in Ukraine and Russian gas returning to EU markets.