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Final investment decision

In order to continue with the project implementation and from the preparatory (study) phase start with the construction phase, in accordance with the project implementation deadlines, it was necessary to adopt the Final Investment Decision by the Assembly of LNG Croatia LLC by 31 January 2019, at the latest. 

The Final Investment Decision concerning implementation of project of a floating liquefied natural gas terminal on the Island of Krk was adopted on the basis of several input parameters, which include, among other things, the results of a binding capacity booking process that determines the future revenue of the project, estimated capital costs of the project coming from conducted procurement procedures for the purchase of the FSRU vessel and EPC works (construction of jetty with auxiliary facilities and high pressure connection gas pipeline for floating liquefied natural gas terminal) and estimations of required investments by the owners of LNG Croatia LLC.  

The capital costs of the project, in accordance with the conducted procurement procedures, have been minimized and, from the originally planned investment of EUR 383 million, the investment was significantly reduced to EUR 233.6 million. In addition to the already approved grant from the European Commission in the amount of EUR 101.4 million, the Government of the Republic of Croatia, by the decision on financing the first phase of the project of a floating terminal for liquefied natural gas on the Island of Krk, provided a grant of EUR 100 million. The remaining EUR 32.2 million of capital costs will be invested by the owners of LNG Croatia LLC through recapitalization. By booking 0.52 billion cubic meters of natural gas annually, owners of LNG Croatia LLC will have a positive return on investment in accordance with the allowed revenue, which is regulated by the Methodology adopted by the Croatian Energy Regulatory Agency. 

Assembly of LNG Croatia LLC adopted the Final Investment Decision on 31 January 2019 Assembly meeting, which enabled the further realization of the project and the start of construction of the terminal.