“Croatia has established itself as an important energy hub” – Q&A with Ivan Fugaš, Managing Director of LNG Croatia

Ivan Fugaš will be one of the speakers at the Budapest LNG Summit, to be held on 14 April.

The opening of the Krk Island LNG terminal in 2021 significantly reshaped the region’s gas landscape by making liquefied natural gas accessible to Central and Southeastern Europe. Soon, a new chapter in this story will unfold, as the terminal’s expansion and the construction of new connecting pipelines are expected to be completed next year. These developments will enable the transmission of natural gas from the Krk Island LNG terminal to Slovenia, Hungary, and other countries in Southeastern Europe. How could this impact the region’s gas sector? CEENERGYNEWS asked Ivan Fugaš, Managing Director of LNG Croatia, the terminal’s operator.

Everything is going according to plan. The new regasification module is complete, and the remaining equipment for its installation will be ready by June. By the end of August, we plan to take the FSRU vessel LNG Croatia to the shipyard to install and integrate the new regasification module. Everything should be finalized by mid-October, when we plan to carry out the commissioning.

In 2024, the utilisation rate was just over 87%. For 2025 – at least until August 25, when we plan to take the FSRU vessel to the shipyard – it is expected to be slightly above 88%.

Our terminal’s capacity is fully booked until 2037. The expansion project is divided into two phases: In the first phase, we will offer approximately 0.7 bcm to the market, which we expect to be sold out at the auction planned for May this year. Once our TSO, Plinacro, completes the necessary pipeline infrastructure, the remaining additional capacity will be made available by the end of next year.

It’s difficult to say, as LNG Hrvatska as the terminal operator, is not involved in LNG trading. However, we have not encountered any difficulties in the past, and we do not anticipate any now. LNG from the USA is already the most common source at our terminal, and after the capacity increase, we expect even more US LNG deliveries.

Even before the capacity increase, the Krk LNG terminal had a significant impact on natural gas supply security, not just for Croatia but for the wider Southeast European region. The additional capacity will provide more supply options for neighbouring countries, further strengthening regional energy security.

The LNG terminal in Croatia was built to provide an additional entry point for natural gas and enhance the security of supply. Even if we were not fully booked, there would still be a strong need for the terminal. This is likely true for other LNG terminals in Europe as well. Additionally, the flexibility of floating LNG terminals makes them easier to decommission if they are no longer needed, which ensures that their development is a sound investment.

With the construction of the LNG terminal, Croatia has established itself as an important energy hub in Europe, a role that will only strengthen in the coming years. So far, we have demonstrated that Croatia and the LNG terminal can be relied upon, and I believe this will continue.