ZAGREB (Croatia), September 7 (SeeNews) - Hungary has signed a six-year agreement with Shell to receive 250 million cubic metres of liquefied natural gas (LNG) per year via Croatia's LNG terminal, now under construction on the Adriatic island of Krk, Hungary's foreign affairs and trade minister Peter Szijjarto said.
The capacities required for regasification have been contracted, and accordingly all requirements for the marketing of LNG from the LNG terminal in Krk, have been met, said in a statement on Friday.
This means that by the end of 2027, gas arriving from the Krk LNG terminal will meet 10% of Hungary's gas needs, Szijjarto added.
In February, Szijjarto reiterated Hungary's interest in acquiring a minority stake in the Krk LNG terminal project, and in linking the gas transmission systems of Hungary and Croatia.
In December, Szijjarto said that Hungary was planning to start negotiations for buying a stake in the Krk LNG terminal project in January. Back then, he also recalled Budapest's proposal for an integration of the Hungarian and Croatian energy markets in order to achieve a lower price for natural gas supplies.
In 2019, Hungary revealed its interest in acquiring a 25% stake in the capital of state-owned LNG Croatia, the developer of the LNG terminal project on the Krk island. The project comprises the construction and operation of a LNG terminal featuring a floating storage and regasification unit (FSRU) and its connections to the national gas transmission network.
The Krk LNG terminal will deliver gas to the Croatian national transmission network connected to fellow EU member states Slovenia, Italy and Hungary, as well as non-EU Serbia and Montenegro. The terminal will have a capacity to transport 2.6 billion cubic meters (bcm) of natural gas per year as from the start of 2021.
In July 2019, the European Commission approved Croatia's plans to support the development of the 233.6 million euro ($276.2 million) LNG terminal project with 100 million euro in state aid.