July 6 (SeeNews) - Croatia's government said on Thursday that it revoked its decision obliging oil and gas group INA to sell its entire domestic natural gas output to state-owned power utility Hrvatska Elektroprivreda (HEP).
“As of today, there is no obligation for INA to sell its domestic gas production to HEP,” prime minister Andrej Plenkovic told a news conference, as seen in a video published by public television HRT. The Okoli natural gas storage facility is now full and there is no more need for the obligation to remain in place, Plenkovic added.
In September, the government decided to oblige INA to sell all of its domestically produced gas to HEP at a fixed price, standing at 41 euro ($44.6) per megawatt hour back then, in order to secure gas supply to the domestic market amidst a surge in global energy prices caused by Russia’s invasion of Ukraine.
The decision to cancel the obligation comes after opposition member of parliament Zvonimir Troskot said last week that HEP is losing 500,000 euro per day by purchasing natural gas from INA at a regulated price of 47.60 euro per megawatt hour, only to resell it later through the Croatian Energy Market Operator (HROTE) at lower prices, local media reported.
($ = 0.919 euro)
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