Croatia Signs €533 Million Contract to Build 4 New Gas Pipelines

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Croatia Signs €533 Million Contract to Build 4 New Gas Pipelines

 Flag of Croatia (© Shutterstock/adaptice photography)
Flag of Croatia (© Shutterstock/adaptice photography)

The plan to build four major gas pipelines in Croatia has entered the implementation phase after the government signed the contract with the gas pipeline operator, Total Croatia news reported on Monday, April 8, citing a report from Poslovni Dnevnik

According to the report, Croatia's Ministry of Economy and Sustainable Development, the Fund for Environmental Protection and Energy Efficiency, and Plinacro, the national gas transmission system operator, signed a contract to construct four new gas pipelines.

The 533.08-million-euro ($572.8 million) project is financed through the National Recovery and Resilience Plan (NPOO) as part of the European Union's REpowerEU plan to diversify energy supplies in the wake of Russia's war in Ukraine, which has led the disruption of energy trade across Europe and beyond.

The new pipelines will connect Zlobin to Bosiljevo, Bosiljevo to Sisak, Kozarac to Sisak, and Zabok to Lučko, transporting gas from Croatia's liquefied natural gas (LNG) terminal on Krk island to neighboring Slovenia, Hungary, and other southeastern European countries.

"All of the new pipelines will have bi-directional flow capability and will be integrated into Plinacro's gas transmission network monitoring and management system," the ministry said in a statement.

Economy Minister Damir Habijan said the project is crucial for Croatia's energy transition and strengthens the country's energy security.

"Russia's aggression against Ukraine has highlighted the need for a secure gas supply across the EU, and this necessitates investments in gas infrastructure," Habijan said.

Plinacro board president Ivica Arar expressed gratitude to the government for securing grants for the project, which he said would not increase gas transportation tariffs.

"This significant investment, thanks to government grants, will not burden consumers," Arar said, adding that the new pipelines would significantly increase gas transmission capacity to Slovenia and Hungary. 

Plinacro can transport 260 million cubic meters of gas annually to Slovenia. However, the capacity will expand to 1.5 billion cubic meters upon completion. Capacity to Hungary will also increase from 1.7 billion cubic meters to 3.4 billion cubic meters.

The total length of the pipelines will be 220 kilometers, and Plinacro is confident it can meet the "tight and demanding deadlines" for completion by mid-2026, Arar said.

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