Mazal: The delivery of Russian gas after 2010 is not in question

At the 5th session of the Intergovernmental Russian-Croatian Commission for Trade, Economic and Scientific-Technical Cooperation in Moscow, it was concluded that the delivery of Russian gas to Croatia after the expiration of the contract with Gazprom is not in question, and it was agreed to consider the possibility of part of the South Stream pipeline route passing through Croatia as well as the preparation of a cost-benefit analysis for the Adria Friendship project, said Tomislav Mazal, spokesperson for the Ministry of Economy, Labor and Entrepreneurship (MINGORP) and advisor to the minister, to Hina.

The Croatian delegation was led by Deputy Prime Minister and Minister of Economy Damir Polančec, while the Russian side was represented by Minister for Civil Defense, Emergency Situations and Elimination of Consequences of Natural Disasters Sergei Shoigu. The Croatian delegation expressed interest to the Russian side in increasing the delivery of Russian gas from the current 1.15 billion cubic meters per year to 2.7 billion cubic meters, Mazal said. He explained that this increase refers to the period until 2020 when, according to estimates from the energy strategy, Croatia will need 6 billion cubic meters. Currently, Croatia consumes 3.4 billion cubic meters annually.

The existing quantities for Croatia, even after the expiration of the contract with Gazprom, which is valid until the end of 2010, are not in question, Mazal reports, adding that the biggest obstacle to increasing quantities is the overloading of the pipeline through which gas is supplied from Russia. It was agreed to form a narrower team of experts consisting of representatives from the Energy Directorate of MINGORP, a Croatian trading company, and Gazprom, which should define the quantities of gas that Croatia could receive from 2011 by September 30. Regarding the South Stream pipeline, the Croatian side was informed that its route has not yet been determined and that there is a possibility for Croatia to participate in this project, i.e., for part of South Stream to pass through Croatia.

It was agreed that a team composed of experts from MINGORP, Plinacro, and Gazprom would determine a possible route for part of South Stream through Croatia, and the expertise of this team would serve as a basis for a possible decision on the passage of South Stream through Croatia. The construction of South Stream, in any case, ensures us new quantities of gas, and if this pipeline does not go through Croatia, Mazal adds. The Croatian side also expressed readiness to discuss the Adria Friendship project. The state of technology that allows for quality handling of ballast water from tankers supports its realization, and additionally, from November 1, the Janaf system will be reversible, which is also a significant technical prerequisite for the realization of the project, says Mazal.

It was agreed that a working group from Janaf, MINGORP, and Transneft would prepare a cost-benefit analysis, which will serve for making a final decision on the Adria Friendship project, he reported. The meeting also discussed the clearing debt of Russia to Croatia, within which an amount of 5 million dollars is realized through the delivery of equipment for the Sisak thermal power plant (TE), and it was decided that 15.7 million dollars of debt to Janaf would be redirected to HEP for the needs of TE Sisak. A Letter of Intent was also signed between Nexe Group and the Russian company Karbonat for the construction of a Nexe Group cement plant in Russia, as well as an Agreement on mutual cooperation in customs matters. A Protocol on the meeting of the commission was signed, and the next meeting was agreed for 2010 in Croatia.  (H)