EU support for LNG terminals

Funding will include more than $100m in support for a new LNG terminal on the Croatian island of Krk.

The strategy behind supporting new electricity, smart grids and gas projects is to contribute to achieving the Energy Union’s goals by connecting European energy networks together and increasing the security of energy supply.

This in turn should contribute to sustainable development by integrating renewable energy sources across Europe.

Miguel Arias Cañete, commissioner for climate action and energy, said: “This is another milestone in the setup of a cleaner, more competitive European energy market. An energy infrastructure which is fit for purpose is essential for renewables to thrive.”

He added: “Thanks to this upgrade, the proposals in the Clean Energy for All Europeans package are even closer to become a reality. The EU is demonstrating its commitment to delivering cheaper, more sustainable and secure energy to European consumers.”

The money for the project will come from the Connecting Europe Facility (CEF), the EU’s funding support programme for infrastructure. Around 20% of that funding will support construction of the new Croatian LNG terminal.

Connecting Europe Facility will support the construction of an off-shore LNG terminal on the Croatian island of Krk which will bring diversification in the region mostly dominated by one single source of supply. It will thus improve energy security and price competitiveness in the region.

Last year, the commission supported Finland’s plans to grant $31.5m to build an LNG terminal at Hamina port on the country’s south coast.