OIL & GAS: Government to Buy LNG Project Property from Hypo Bank

Mladen Pejnovic (SDP), Head of the State Office for State Property Management (DUUDI), confirmed that the government plans to acquire property on the island of Krk from Hypo Alpe-Adria-Bank, which has a mortgage rights on the property. DUUDI is currently formulating an assessment of the property that would later serve as a basis in the negotiations.

The acquisition price is estimated at a range of €20-€40 million, which will be an issue of negotiation between DUUDI and Hypo Bank. The government intends to purchase the land so that it could sell it to the future investor for the future liquefied natural gas (LNG) terminal on Krk, valued at €650 million (see VG Croatia’s Energy Sector Brief).

Meanwhile, ‘across the Atlantic pond’, in January, the U.S. Senate introduced the Expedited LNG for American Allies Act of 2013, which amends the Natural Gas Act deem consistent with the public interest regarding the exportation of natural gas to member countries of NATO (e.g. Croatia) and Japan. The legislation is part of the U.S.’ geo-strategic plan to make European countries less dependent on the Russian gas supply. The Act is expected to be passed by the Congress in the following months…

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