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Serbia is interested in securing natural gas supplies via the Croatian terminal on the island of Krk, according to Croatian Minister of Economy Ante Šušnjar. Serbian Energy and Mining Minister Dubravka Đedović Handanović confirmed that Serbia is considering the option, noting, however, that the supply route has been somewhat insecure.
Šušnjar stressed that Croatia has secured a stable future for natural gas as a transitional fuel by developing infrastructure intended for both domestic use and the wider region.
The capacity of the liquefied natural gas (LNG) terminal on Krk Island in Croatia has been increased from 2.9 billion to 6.1 billion cubic meters (bcm) per year. Additionally, investments are underway in the pipeline network to connect Croatia with Slovenia and Hungary.
Croatia has received EUR 560 million from the European Union’s funds to modernize and expand its gas system. Šušnjar noted that he has been in talks with his counterparts from Austria, Slovenia, and the European Commission to ensure the interconnection of the Croatian and Slovenian gas grids.
The expansion would facilitate gas deliveries to Slovenia, Austria, and parts of Germany. He stressed that all new pipelines would be hydrogen-ready.
“Our goal is to enable Southeast Europe to utilize the terminal’s full capacity through Croatia starting this year,” the minister announced at the Jutarnji List energy conference on Croatia’s decisions for the following decades.
The 15-kilometer link to Serbia
Currently, Croatia consumes just under 3 bcm of gas annually, one-third of which is sourced from domestic production.
Šušnjar highlighted the South Gas Interconnection, designed to supply gas to Bosnia and Herzegovina from the LNG terminal. Croatia has fulfilled all the necessary prerequisites, and the signing of an intergovernmental agreement is expected soon, he added.
He also stressed the importance of creating an interconnection between Croatia and Serbia.
“We are further strengthening regional energy stability by building an interconnection with Serbia to provide it with access to the LNG terminal,” he underscored.
The Croatian minister revealed that only 15 kilometers of pipeline is needed to connect the two countries.
Šušnjar: Serbia is a very interesting market for LNG transport
When asked about Serbia’s interest in such an interconnection, Šušnjar said that the neighboring country was interested, and that initial discussions took place during joint efforts to help Serbian oil and gas company Naftna Industrija Srbije (NIS) secure a US sanctions waiver to resume operations.
“As far as I know, there is serious interest there,” Šušnjar stressed.
Serbia has a developed infrastructure and market, so for LNG transport it is an economically very interesting market, he explained.
“I think it is geopolitically vital for Serbia to diversify its energy supply routes. It is a win-win situation,” he added.
Đedović Handanović: Serbia is a major regional market
Serbian Minister Dubravka Đedović Handanović responded that while Serbia is potentially considering the project as an additional supply route, there is a degree of caution due to past experiences.
As an additional supply route, it is an important interconnection, according to her.
“We will see whether an agreement of intent on the construction will be signed,” she said, adding that the proposal is under consideration.
She pointed out that Belgrade views this route as somewhat insecure – not because of Serbia, but due to Croatia’s conduct in certain situations.
She recalled that there had been disruptions in crude oil deliveries via the JANAF pipeline in Croatia.
According to her, Croatia is interested in this interconnection because Serbia is a major regional market with a growing economy and rising gas demand.
“Serbia is evaluating its interest,” Đedović Handanović added.
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