The Final Investment Decision for the floating LNG terminal on the Croatian Island of Krk was adopted on January 31, 2019. The procurement process of the FSRU vessel took place in November 2018, during which the bid from Golar was evaluated as the most economically beneficial, offering a new conversion of the existing LNG tanker to the FSRU vessel worth EUR 159.6 million.
Specifically, Golar Viking LNG carrier was built in 2005 and is set to arrive in the LNG terminal location in the timeframe from September 30 to October 30, 2020.
The decision was based on
- The results of the binding Open Season procedure that decides future revenues of the project;
- The projection of capital expenditures in relation to the conducted procurement procedures for FSRU vessel and EPC works (construction of jetty with auxiliary facilities and high-pressure connecting gas pipeline for the receiving LNG terminal);
- The projections of required investment by LNG Croatia shareholders.
In addition, based on the deadlines, the construction is scheduled to begin at the end of March or the first days of April, 2019.
The procurement procedure for the engineering, procurement and construction of jetty with the auxiliary facilities and connecting high-pressure gas pipeline for the receiving LNG terminal, was decided on January 2019.
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Also, the bid from the consortium Pomgrad, GP Krk and STSI in the amount of EUR 58.4 million was evaluated as the most economically beneficial.
LNG Croatia announced that except the grant that was received by the European Commission, of 101.4 million euros, a further grant of 100 million euros was need based on the Government’s decision on financing the first phase of the project for the floating LNG terminal on the Island of Krk which was adopted on January 30, 2019.
The company stated that the overall capital expenditures of the project resulted to 233.6 million euros.
Concluding, the Government will grant the project with 100 million euros, whereas LNG Croatia shareholders will finance the project with 32.2 million euros.
