Croatia to invest $182.3 MM to boost gas capacities

(Reuters) - Croatia will invest 180 MM euros ($182.32 MM) to build a new gas pipeline and more than double capacity at its LNG terminal in a bid to secure gas supplies, the government said on Thursday.

European countries, which have heavily relied on Russian gas supplies, are trying to diversify gas supplies following Russia's invasion on Ukraine.

A new gas pipeline, estimated to cost 155 MM euros, will connect the towns of Zlobin and Bosiljevo in northwestern Croatia. The LNG capacity on the northern Adriatic island of Krk will increase to 6.1 bcm of gas annually from 2.6 B bcm.

Energy Minister Davor Filipovic said the government has made a strategic decision to secure gas supplies but also to position itself as an energy leader in the region, state news agency Hina reported. The announcement did not include a timeline for the project.

The government will use European Union funds to finance the projects, along with allocations from state budget, Filipovic said.

The floating LNG terminal on the island Krk, which begun operating in January 2021, diversified supply for Croatia, which until then relied on Russian gas and its own production, but also for some other countries in central Europe including Hungary. 

(Reporting by Daria Sito-Sucic; Editing by Josie Kao)

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