EU-backed Croatia LNG import project struggles to progress

The first binding round for capacity at the Krk LNG terminal has failed to attract sufficient interest. Held 19 March-8 April, a state-backed utility company was the only party to make a bid for 100 Mcm/yr. The poor bidding round result has led project company LNG Croatia to delay the second bidding round, reducing confidence in a project that has pushed back FID a number of times. Despite strong backing from the EU, commercial feasibility and restrictions from the funding agreement have reduced the probability that the floating import project will succeed in its current form. The results of the next bidding round in June will determine whether the project will make FID in the planned time-scale or may even result in the scrapping of the project