The long-delayed project to import LNG via the Croatian island of Krk has received a major boost after the country`s government pledged to provide Eur100 million ($115 million) financing. Register Now LNG Croatia -- a joint venture between Croatia`s gas TSO Plinacro and utility HEP -- has been trying to raise finance for the project by bringing in equity partners, but without success. The EU has long been a supporter of the Krk LNG project as it would help diversify gas supplies into the Balkans, traditionally dependent on Russian imports, and agreed at the end of 2017 a Eur102 million grant to install an FSRU.

The realization of the LNG terminal project will enable the gradual strengthening of the energy community by diversifying energy sources and transport routes," Croatia`s energy minister, said government adopted a decision on part-financing the Eur234 million project. It is to set aside Eur50 million in both 2019 and 2020 for the project, or 43% of the total cost. The finance is in the form of capital assistance from the state budget. The remaining amount of Eur32 million will be provided by Plinacro and HEP.