State-held project company LNG Croatia has made a final investment decision (FID) on the construction of a floating storage regasification unit (FSRU) on the Island of Krk (Croatia) based on the results of the binding open season procedure. The binding process for booking the capacity of the LNG terminal is complete and resulted in a capacity booking of 0.52 bcm/year. The total capital costs for the project have been reduced to €234m from the initially expected €383m.
The FSRU project will be developed in two phases, the first comprising setting up a 2.6 bcm/year (about 1.9 Mt/year) FSRU as of early 2020, that could be expanded in phases by 1 bcm/year and by 3 bcm/year, depending on gas demand.
The procurement procedure for the FSRU was carried out in November 2018. Golar LNG will convert its Golar Viking LNG tanker to a FSRU at a total cost of €160m. The vessel is expected to be delivered to the terminal location by September-October 2020 for the first phase of the project, following the conversion procedure. Works on the engineering, procurement and construction (EPC) of the associated jetty with the auxiliary facilities and a high-pressure connecting gas pipeline are expected to start by the end of March 2019. They will be carried out by a consortium comprising Pomgrad, GP Krk and STSI for a total amount of €58m.