EC Approves Croatian State Aid for LNG Terminal Expansion

The European Commission approved Croatian state aid for the expansion of the liquefied gas terminal on Krk in the amount of 25 million euros.

The Commission states that in accordance with EU state aid rules, it has approved the Croatian measure of 25 million euros to support the expansion of the liquefied natural gas (LNG) terminal on the island of Krk. The measure will be partially financed from the Recovery and Resilience Mechanism, in line with the Commission’s positive assessment of the amended Croatian recovery and resilience plan.

This measure will finance the installation of an additional regasification module with a capacity of 250 thousand cubic meters at the existing LNG terminal on Krk. This will achieve a new maximum regasification capacity of 700 thousand cubic meters per hour, corresponding to 6.1 billion cubic meters annually. The support will be in the form of direct grants, covering part of the investment costs, to LNG Croatia, the holder and operator of the terminal.

The Commission assessed the measure in accordance with EU state aid rules, which allow member states to support the development of certain economic activities under specific conditions in line with the 2022 Guidelines on State Aid for Climate, Environmental Protection, and Energy.

The Commission determined that the measure is necessary and appropriate to enable the beneficiary to implement the project. The Commission also considered that the project is needed to ensure gas supply for Croatia and the Southeast European region while contributing to the diversification of energy supply and ending dependence on Russian fossil fuels in line with the REPowerEU plan.

The Commission concluded that the measure is proportional as it is limited to the necessary minimum and that its positive effects outweigh any possible negative effects on market competition and trade in the EU. Based on this, the Commission approved the Croatian measure in accordance with EU state aid rules.