EC approves Croatian state support for the expansion of the LNG terminal

The Commission states that in accordance with EU rules on state aid, it has approved a Croatian measure in the amount of €25 million to support the expansion of the liquefied natural gas (LNG) terminal on the Island of Krk. The measure will be partially financed from the Recovery and Resilience Mechanism, in accordance with the Commission's positive assessment of the amended Croatian plan for recovery and resilience.

On Monday, the European Commission approved Croatian state support for the expansion of the liquefied gas terminal on Krk in the amount of €25 million. The measure will finance the installation of an additional gasification module with a capacity of 250 000 cubic meters at the existing LNG terminal on Krk. This will achieve a new maximum gasification capacity of 700 000 cubic meters per hour, which corresponds to 6.1 billion cubic meters per year. The support will be in the form of direct grants, which cover part of the investment costs, to LNG Hrvatska, the holder and operator of the terminal.

The Commission evaluated the measure to be in accordance with the EU rules on state aid, which allows member states to support the development of certain economic activities under certain conditions in accordance with the 2022 Guidelines on state aid for climate, environmental protection and energy.

The commission determined that the measure is necessary and appropriate in order to enable the user to implement the project. The Commission also considers the project as necessary to ensure gas supply for Croatia and the region of Southeast Europe, and at the same time contribute to the diversification of energy supply and ending dependence on Russian gas and oil in accordance with the REPowerEU plan.

The Commission concluded that the measure is proportionate because it is limited to the necessary minimum and that its positive effects outweigh any possible negative effects on market competition and trade in the EU. Based on this, the Commission approved the Croatian measure in accordance with EU rules on state aid.

Source: HRT