Ćorić: Croatia could run out of oil and gas without new investments

Croatia could run out of oil and gas production by 2035 without new investments in research and development, said Minister of Environment and Energy Tomislav Ćorić on Friday at a conference on the Croatian energy market in the European Energy Union. Stating that domestic oil production is declining by an average of about ten percent annually, and gas by about fifteen percent, Ćorić emphasized that only new production and new investments in research and development can stop these negative trends.

The challenges that, in his opinion, lie ahead for Croatian energy policy in the near future include determining the optimal energy mix, aligning with the EU’s energy development goals, and establishing an appropriate legal framework, which primarily means transparent market rules.

– The EU has five pillars of energy development: security of supply, integration into the single EU market, reducing energy consumption, reducing CO2 emissions from the energy sector, and promoting research and development,” said Ćorić.

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He listed several laws that are in force or are pending adoption that could bring Croatia closer to these EU principles. In this context, he mentioned the Gas Market Act, the Hydrocarbon Exploration and Exploitation Act, the Liquefied Natural Gas Terminal Act, and the Renewable Energy Sources Act. He also pointed out that the controversies surrounding the future LNG terminal on Krk are spread by those who do not want it, or have an interest in not having it built.

The head of the European Commission’s Representation in Croatia, Branko Baričević, stated that energy and environmental protection are primary topics for the EU. According to the vision, EU citizens should have access to affordable energy prices in the future, with particular consideration for the most socially vulnerable. However, cheaper energy sources would come as a result of new technologies, for which significant investments in infrastructure are needed across the entire Union, says Baričević.

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Therefore, the EU funds allocated for sustainable energy development amount to 23 billion euros for the period from 2014 to 2020.

The CEO of Končar, Darinko Bago, says that when creating the energy mix, Croatian interests, namely energy independence, should be prioritized. He also believes that the country’s energy strategy requires strong investments. Croatia still has long-term potential regarding hydrocarbons, says the director of strategy and development at INA, Hrvoje Glavaš.

For Barbara Dorić, the new director of LNG Croatia, gas will remain the dominant energy source for many years to come. Dorić stated that Croatia is still attractive to foreign investors regarding the production and exploitation of energy sources, primarily when it comes to onshore exploitation.