Plinacro's gas pipeline Omišalj – Zlobin receives EUR 16 million EU grant by CEF (Connecting Europe Facility)

The CEF Coordination Board at its meeting on 25 January 2018 proposed a co-financing of Plinacro’s  Omišalj-Zlobin delivery gas pipeline by a grant in the amount of EUR 16,433,500. In most cases, the funds from the stated fund are granted up to a maximum of 30 percent of the investment for the construction activities, however, Plinacro was granted 50% of the funds necessary for the construction of the relevant gas pipeline, the value amounting to EUR 32.867 million.

These are funds intended for the projects on the PCI list (Projects of Common Interest) of the EU for which Plinacro competed with the consent and support of the Croatian Ministry of Environment and Energy. The Omišalj-Zlobin gas pipeline will connect the LNG terminal on the island of Krk with the existing Croatian gas transmission system thus enabling gas flow from the LNG terminal for Croatia and for the neighbouring countries. The funds will be awarded after the preparation of the contract and the confirmation of the European Commission in February 2018.

By this Decision the European Union strongly supports the implementation of the LNG-project on the island of Krk and the construction of Plinacro’s delivery gas pipeline. The EU has already approved grants from the same fund for studies and works for the LNG terminal, and for studies for delivery gas pipelines. This is the third time that the CEF approves a grant to Plinacro (the first two times for studies in the amount of EUR 7.075 million). In total the amount of grants received from CEF is EUR 23,433,500 million. If we add to this the funds that Plinacro successfully withdrew from pre-accession funds, the total received grants reach an impressive amount of EUR 28.588 million.