By signing a ten-year contract with Gazprom for the annual supply of one billion cubic meters of gas, PPD led by Pavao Vujnovac has resolved the previous uncertainty caused by one-year contracts with this Russian company. There were speculations that PPD’s contract jeopardizes the LNG terminal project on Krk, but PPD denies this.
The annual quantity of up to one billion cubic meters of gas that PPD has contracted with Gazprom approximately corresponds to the quantities and energy value produced and marketed in Croatia by Ina.
– PPD continuously monitors all activities in the context of diversifying supply routes and we are open to all new gas supply routes that are economical and sustainable. The company is primarily focused on supply security and is involved in all projects that can contribute to supply security and diversification of supply routes – PPD responded to Lider’s inquiry.
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The new contract, PPD explained, ensures that this domestic company can procure the previous average annual quantities of natural gas over the next ten years. According to Gazprom, this is an annual quantity of up to one billion cubic meters of gas, which approximately corresponds to the quantities and energy value produced in Croatia by Ina and marketed through suppliers and distributors.
– We are extremely pleased to have signed this contract with Gazprom Export. Our cooperation with a strong and reliable partner provides the Croatian market with a secure and reliable gas supply – said PPD’s CEO Pavao Vujnovac on the occasion of signing the contract.
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The construction of the LNG terminal on Krk, whose initial works have already been financed from European funds, would not interrupt the procurement of gas from other routes. Since Croatia also produces gas, it is not as dependent on Russian gas as some other European countries. In general, Europe imports the most gas from Russia, accounting for 37.5 percent, followed by Norway, from which it procures 31.6 percent of gas; the remainder of imported gas mostly comes from African countries.
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However, the mere possibility that Croatia can procure liquefied natural gas would affect the price from other suppliers. The EU therefore strategically and financially supports these and other gas supply route diversification projects. In addition to the LNG terminal on Krk, for which 12.6 million euros have already been paid, the interconnection Croatia – Slovenia is currently supported with 10 million euros as part of the European financial instrument CEF Energy, as well as the transit pipeline for the LNG terminal with five million euros.
