(MENAFN- Trend News Agency) Baku, Azerbaijan, Aug.1

By Leman Zeynalova – Trend:

European Commission has approved public support for Croatian LNG terminal,Trendreports citing the Commission.

'The European Commission has found Croatian plans to support the construction and operation of a liquid natural gas (LNG) terminal at Krk island to be in line with EU State aid rules. The project will contribute to the security and diversification of energy supplies without unduly distorting competition,' reads a message from the organization.

The measures approved today will support the construction and operation of a floating LNG terminal, consisting of a floating storage and regasification unit (FSRU) and the connections to the national gas transmission network. The LNG terminal is designed to transport up to 2.6 billion cubic meters per year (bcm/y) of natural gas into Croatia national transmission network as from 2021.

The total investment costs to build the terminal amount to €233.6 million. This will be financed through:

a direct equity contribution of €32.2 million from the LNG terminal company shareholders;

a contribution of €101.4 million from the Connecting Europe Facility, which is centrally managed by the European Commission, through the Innovation and Networks Executive Agency (INEA);

a direct financial contribution of €100 million from the Croatian State budget.

In addition, Croatia will grant a tariff compensation called 'security of supply fee', which is financed by levies charged by the gas transmission system operator to gas users along with gas transmission tariffs, in case revenues from the terminal fees are not sufficient to cover operating expenses.

Croatia notified the Commission of the €100 million direct financial contribution, as well as of the security of supply fee. Both support measures involve State aid under EU rules.

---

Follow the author on Twitter:@Lyaman_Zeyn

Follow Trend on Telegram. Only most interesting and important news

MENAFN0108201901870000ID1098830624