Croatia Mulling LNG Alternative

Croation state-owned pipeline operator Plinacro has confirmed that it is undertaking a feasibility study for a planned LNG terminal in light of delays on the same project by another operator.

In a statement to Reuters news agency today, Plinacro said that it was considering the alternative project as a result of issues with the Adria LNG-led terminal project.

"Due to a delay in implementation of an LNG terminal by the Adria LNG consortium, we have kicked off a feasibility study for another option," Plinacro told the news agency. "The study is expected to be completed in the second half of 2013."

The Croatian government has previously expressed its frustration with the Agria LNG project, which was delayed in June of 2010, indicating that it is unwilling to wait on the project, which is not expected to be operational until 2017.

Last year, representative from the Croation energy ministry, Darko Horvat told Reuters that the country was not willing to wait for the important decisions on the project, such as the final investment decision (FID) which is expected for 2013 and the beginning of construction due to begin in 2014.

"The Adria LNG partners have not given up a project, but it is for us unacceptable to wait until 2013 to move forward," he said. "We cannot allow that nothing happens."

E.ON Ruhrgas is the major shareholder in the Agria LNG consortium with a 39.17 per cent stake. OMV holds a 32.48 per cent stake, while Total holds a 27.35 per cent stake. Geoplin holds the remaining 1 per cent stake.