EU invests in energy security and diversification in Central and South Eastern Europe
The EU will invest €101.4 million in the construction of the liquefied natural gas (LNG) terminal in Krk, Croatia. In the presence of Commissioner for Climate Action and Energy Miguel Arias Cañete and Energy Ministers of Croatia and Hungary, a grant agreement under the Connecting Europe Facility (CEF) was signed at the Energy Council today. The grant contributes to the overall estimated costs of €383.6 million.
Commissioner Miguel Arias Cañete welcomed the investment:
Today's signature shows that the Energy Union is a reality on the ground: we are building missing energy links, uniting markets, and improving security of supply. This investment will not only allow for the supply of natural gas to Croatia and Hungary: it will also increase the diversification of energy sources of Central and South Eastern Europe, and give an economic lift to the region. With commitments like these, the EU delivers true added value for its citizens.
As part of its Energy Union strategy, the EU is committed to building missing energy infrastructure links and ensuring that every EU country has access to at least three different sources of gas. The construction of the LNG terminal, which will first operate as an offshore floating storage and regasification unit with a yearly capacity of at least 2 billion cubic metres, will increase the security of gas supply in Central and South Eastern Europe. It will also improve the competitiveness in the region and, as a priority project under the Central and South Eastern Europe Energy Connectivity (CESEC) initiative, provide for a more effective integration of key infrastructure projects. Krk is therefore a true CESEC achievement and an example of how this initiative can make way for regional cooperation. Until 2020, a total of €5.35 billion is being made available to trans-European energy infrastructure projects under the Connecting Europe Facility. More information on Krk is available in a factsheet.