OIL & GAS: Plinacro Divesting of LNG Project to Croatia Electra (HEP)

The state-owned natural-gas network company Plinacro has initiated the sale of 50% of its shares of LNG Croatia, a state-owned company that will be in charge of the construction and management of the future liquefied natural gas (LNG) terminal on the island of Krk. The shares will be sold to the state-owned electric company Croatia Electric (HEP), which is the second shareholder of LNG.

Plinacro states that the main reason behind its divestiture is to avoid potential problems with obtaining the certificate that is in accordance with national legislation and EU directives for providing supply services.However, this explanation appears to be a stretch, rending credence to the supposition that the decision is an attempt to usurp direct political control of the LNG project by Minister of Economy Ivan Vrdoljak (HNS).  Thus, HEP is to become the owner of 100% of the LNG shares; the company will be headed by Mladen Antunovic (HNS), Vrdoljak’s confidante…

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