Marjan Vugrinec (MVM CEEnergy Croatia): Our revenues have grown in parallel with the record rise in gas prices

With reserved 6.75 billion cubic meters of regasification capacity and supply contracts from 2021 to 2027, MVM CEEnergy, the Croatian subsidiary of the Hungarian MVM Group, is the largest lessee of the LNG terminal on Krk. In addition, in 2021, it generated as much as 3.59 billion kuna in revenue from gas sales, making it one of the largest and fastest-growing companies in Croatia. Marjan Vugrinec, the CEO of this very young company founded in February 2020, states that this revenue growth resulted from the significant increase in gas prices at the end of last year.

– MVM CEEnergy Croatia is the lessee of the LNG terminal on the island of Krk from January 1, 2021, to September 30, 2027. Although the company was established in 2020, the primary focus in the first few months was to obtain all the necessary permits to commence commercial activities. The LNG terminal began operations on January 1, 2021, and MVM CEEnergy Croatia imported its first LNG cargo into Croatia on that date. The annual quantity we deliver through the LNG terminal is approximately 1 billion m3 of gas, making us the largest user of the terminal. In 2021, we delivered 9 LNG cargoes. The company’s revenues grew in parallel with the rise in gas prices, which reached record levels at the end of 2021 – explains Vugrinec.

The war in Ukraine and sanctions against Russia, Vugrinec adds, do not affect their business, and their supply of LNG through the terminal on Krk is proceeding smoothly.

– Since the beginning of 2022, we have delivered 5 LNG cargoes, and the geopolitical situation has not impacted the delivery dynamics. The war in Ukraine and sanctions against Russia have highlighted the importance of diversifying energy supply, in which LNG plays a crucial role – says the director, explaining that they have so far imported cargoes from the USA, Trinidad and Tobago, Qatar, with the latest arriving from Egypt.

– In addition to importing LNG, we are expanding our business in the wholesale gas market in Croatia, as well as developing a portfolio of end customers who take gas at the exits from gas distribution systems. We have also started with so-called Ship to Truck operations, which involve reloading LNG from FSRU ships into trucks for LNG transport, so we have been active in this area since the very beginning of the service provided by the LNG Terminal operator – says Vugrinec, emphasizing that 'there is no shortage of customers for this type of delivery'.

Given the mentioned results and further plans, they are also interested in leasing additional capacities at the LNG Terminal, but all capacities are sold out until September 30, 2027. However, as announced by Prime Minister Andrej Plenković, Croatia is very close to an investment decision regarding the upgrade of the LNG terminal on Krk to increase its capacity.