Potential Investors in LNG Terminal Submit Complaint to European Union

Total Croatia News

The saga about the LNG terminal on the Croatian island of Krk continues.

The Development Group, an international consortium of American, Canadian and European companies interested in financing and construction of the LNG terminal project on the island of Krk, has requested protection from the EU and reported the LNG Hrvatska company, led by Mladen Antunović, to the European Anti-Fraud Office (OLAF) and the Innovation and Networks Executive Agency (INEA), reports liderpress.hr on April 9, 2016.

According to unofficial sources from Brussels, the Group complained because the call for investors for the LNG project has not been harmonized with the EU rules and is obstructing the principles of competition. They also objected to the lack of transparency associated with the land on the island of Krk where the project is to be built.

This plot is part of the bankruptcy estate of the Dioki Group and is owned by its creditor Hypo Bank, which transferred its receivables to the Austrian state company Hetu. A group of private investors gathered within the Development Group consortium has secured the right of first purchase of the land, but they have been trying unsuccessfully for three years to buy Dioki’s property, which includes the land as well, and develop their terminal with the capacity of 12 billion cubic metres of gas per year, twice the capacity planned by LNG Hrvatska.

The plot of land is the major reason for the consortium has complainted to European institutions and it also represents the greatest risk related to the project implementation, whoever builds it or whatever capacity the terminal will have. All of this is already slowing down the project, which could, judging by the new political mood, eventually develop as a floating rather than land terminal.

“All companies that had interest in investing or leasing the capacity at the terminal had an opportunity, through public calls, to submit their offers and to exercise their right to participation in a transparent manner. LNG Hrvatska will not take into consideration any form of non-transparent attempts to participate in the project”, said Antunović.


Subscribe to our newsletter

the fields marked with * are required
Email: *
First name:
Last name:
Gender: Male Female
Please don't insert text in the box below!

Leave a Comment