Sanader: We are also considering additional gas imports

Prime Minister Ivo Sanader announced today several additional actions to improve the gas supply situation after the supply from Russia was interrupted again last night, emphasizing that everything is being done to ensure households have a secure supply.

"There is no reason for panic, but there is a reason for seriousness. If we do nothing today, we have enough gas for three weeks," said Prime Minister Sanader after a meeting with the heads of relevant ministries and representatives from INA, Plinacro, and HEP. He announced that the Government could make a decision today during a telephone session regarding a crisis state in gas supply, which would primarily relate to local distributors concerning the reduction of gas supplies to industry. When asked about the possibility of extending school holidays due to the gas situation, the Prime Minister stated that the situation would be monitored. "If the situation complicates, that is one of the options," he said.

As short-term measures in the situation of interrupted Russian gas supply, the Prime Minister stated that INA has been instructed to intensify contacts regarding possible additional imports, as well as to negotiate with the Italian ENI to try to agree that ENI transfers part of its gas quantities from the Northern Adriatic to Croatia. As strategic, long-term goals, he highlighted the completion of talks with MOL regarding the separation of the gas business from INA and the effort to conclude them in January, whereby the gas business would be taken over by Plinacro. Long-term goals also include the construction of new supply routes and an LNG terminal.

Citizens, or tariff customers, are absolutely secure and will receive the necessary quantities of gas, stated Deputy Prime Minister and Minister of Economy, Labour and Entrepreneurship Damir Polančec. He reminded that the Ministry has already introduced measures to reduce supplies to large consumers, such as HEP, and to have an influence on the local distribution network, he announced the decision on the crisis state that will allow distributors to be "put under control" regarding the reduction of supplies to industry.

The Government will likely hold a telephone session this afternoon and accept that proposal from the Ministry, announced Sanader. The vast majority of privileged consumers have already reduced their consumption, and the decision will allow them to be ordered to minimize it. In Croatia, there are 37 distributors, and their system is connected to so-called tariff customers, i.e., households, and part of the industry. The decision on the crisis state allows for the issuance of orders to distributors to supply smaller quantities of gas according to consumer categorization (to industry on the distribution system).

After the complete interruption of Russian gas supply to Croatia last night, needs are being met from domestic production and the underground storage facility Okoli. According to current data, gas consumption is about 580,000 cubic meters per hour, of which about 460,000 relates to general consumption. HEP has enough other fuels for heat energy supply and does not expect any problems in this regard, nor does it anticipate difficulties in electricity supply, said Mravak. He added that estimates indicate that the transition to more expensive fuel will affect HEP by a maximum of 20 million kuna. On HEP’s total revenue of 13 billion kuna, this is almost negligible and will have no impact on prices, said Mravak.   (H)