New report: Pipedream - Debunking the myths of Croatia's Krk gas terminal

The Krk LNG terminal is an unnecessary and expensive project with questionable market demand, and will largely be paid by taxpayers or consumers. The Government of the Republic of Croatia pushes this project contrary to the interests of the local community and consumers, is poorly transparent and does not respect public opinion.

The report also analyses the arguments of the Government and LNG Croatia company about the alleged importance of the LNG project for security of supply and diversification of supply routes. Taking into account existing gas infrastructure and projects currently under construction in the region, Croatia and its neighboring countries are already energy-efficient and resistant enough. This means that the Krk LNG terminal is unnecessary, and even more so if we consider the planned reduction of gas demand across Europe in the coming decades. The construction of a new gas infrastructure in the fight against Russian domination in the gas market is not only a mistake, but a failed strategy: much of the existing infrastructure is mostly inadequately used, and several new construction projects will in fact bring even more Russian gas to Europe.

In order to improve the energy security of Croatia and neighboring countries and decarbonize their energy systems, there are other proven, cost-competitive and much more sustainable solutions. Specifically, the reduction of energy needs through energy efficiency programs and renewable energy projects.

And again, we must emphasise that climate change is a threat we cannot ignore, and the time for small steps and compromises has ended. The Krk LNG terminal is in conflict with the Paris Climate Change Agreement and the latest scientific report from the IPCC. Gas is a carbon-intensive fossil fuel that damages the climate and cannot be considered as a transitional fuel.

In accordance with all the above, FoE Croatia urges again the Croatian Government, as the main shareholder of LNG Croatia, to give up the construction of the LNG terminal on Krk Island. In addition, further investment of public financial resources into fossil gas infrastructure is unacceptable. Instead, these resources should be invested in renewable energy sources - above all solar and wind - and energy efficiency. The new Croatian national energy strategy, which is being prepared, should reflect this.

The full report is HERE.