OMV Interested in Building a LNG Terminal in Croatia

13. Juli 2006, 00:00

OMV AG, Central Europes biggest oil company, and a group of partners may build a liquefied natural gas terminal in...

OMV AG, Central Europes biggest oil company, and a group of partners may build a liquefied natural gas terminal in Croatia that could serve as a hub for gas from Africa and the Middle East. The LNG terminal would be able to re-gasify 8 billion cubic metres to 10 billion cubic metres a year, according to the Vienna-based company.

OMV hopes to build the terminal on the Isle of Krk with other companies including Croatias INA oil company. OMV and other European oil companies are seeking new sources of natural gas after Russia briefly shut off some gas to Europe in January during a dispute about the price Ukraine pays for the fuel.

About a quarter of Europes gas comes from Russia, and most of it flows through Ukraine. LNG is natural gas cooled to a liquid so it can be shipped by tanker and converted back into gas on arrival. The terminal would cost at least EUR 700 million to EUR 1 billion.

The terminal could start operating in 2011 or 2012. Hungary and Croatia also plan to build a gas pipeline to connect the Croatian terminal with Hungary.
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