Goran Frančić, Managing Director of LNG Croatia, visited Dnevnik 3

While attending the Dnevnik 3 show, regarding the signing of the Financing Agreement for the construction of the first phase of the Project, floating LNG Terminal on the Island of Krk from EU side and within Connecting Europe Facility (CEF), Managing Director of LNG Croatia Goran Frančić confirmed that this is the largest amount of grant for development of energy project up to now, and this is almost one third of the total project value. "LNG Croatia is currently carrying out several activities in parallel - with the activities of designing and obtaining the required permits, we are also conducting a commercial one, offering booking of the terminal capacity with which we sell our LNG service at the terminal. Equally, activities related to procurement of FSRU, construction of the jetty and pipeline to the transportation system are underway and we are trying to close the financial structure of the project in order to make the final investment decision" said Mr Frančić on this occasion.

"So far, we have used CEF and some other funds for development, preparation and design, and for the first time funds have been approved for the construction of the terminal and they are intended solely for LNG Croatia, which is also a signatory of the abovementioned agreement," said Mr. Frančić. Location permit for the first stage of the project, a floating LNG terminal, is expected in February after the completion of the EIA process, while the building permit is expected in May next year. Commenting on the financial structure of the project, Frančić mentioned that HEP and Plinacro as current owners of LNG Croatia, or new owners after the announced recapitalization, will invest part of their own funds in the amount of about 30 percent, while the remaining amount needed for project financing is planned to be contracted through credit.

LNG Croatia expects that all construction work on jetty, pipeline and auxiliary facilities should be finalized by the end of 2019, and the release of the first gas from the terminal to the system is expected in early 2020.

Goran Frančić, Managing Director of LNG Croatia, visited Dnevnik 3

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