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Studies and permits

Front-End Engineering Design (FEED) - When implementing complex projects such as LNG terminal on the Island of Krk, it is a common practice to first design a so-called Front-End Engineering Design (FEED) that covers the basic project design variant from a technical, technological and engineering point of view, as well as the initial estimations of capital and operating costs. Based on FEED, as an input parameter, study and project documentation are prepared and tender for works as turnkey solution is conducted. 

FEED for the floating LNG terminal on the Island of Krk was prepared on 30 November 2017 by Belgian design company Tractebel. FEED envisaged the "most complex" scenario as a basic variant for the construction of a floating LNG terminal on the Island of Krk, which involves a large-scale FSRU ship and the construction of a foundation of a concrete coastal jetty system on reinforced concrete caissons. 

Upon completion of FEED, procedures for the preparation of study and project documentation were initiated for the purpose of obtaining permits required for the construction of the terminal and preparation of tenders for the procurement of EPC works and FSRU vessel. 

The Environmental Impact Assessment process was completed on 11 April 2018, when the Decision on Environmental Acceptability was issued, with the application of prescribed environmental measures. Upon completion the process, amendment of the location permit was initiated, which enables the construction of the floating LNG terminal as the first phase of project development (the location permit for the onshore terminal was obtained in July 2015). 

The location permit for onshore terminal was issued on 29 July 2015, which was extended by the Ministry of Construction and Physical Planning by the Decision on extention of the location permit on 16 October 2017. The location permit obtained for onshore terminal was supplemented by the first phase of the project, the technological solution of the floating terminal, and on 26 October 2018, the Decision on the amendment of the location permit was obtained. Based on the amendment to the location permit, the process of obtaining a building permit was initiated. 

Building permits for the construction of a floating LNG terminal were issued on 9 April 2019 (building permit for the construction of jetty, facilities and buildings on land, building permit for the construction of connecting high-pressure gas pipeline, building permit for the construction of  connecting water supply system) and on 11 April 2019 on the basis of building permits, the notification  of the commencement of the construction was made in accordance with the Building Act. 

In addition, pursuant to the Terminal for liquefied natural gas Law (Official Gazette 57/18), on 2 October 2018 a Concession on Maritime Domain Agreement was concluded with the Ministry of Sea, Transport and Infrastructure, regulating the rights and obligations of the provider and the holder of the concession. 

All necessary permits for the start of construction of the terminal were obtained in time of obtaining the building permits on 9 April 2019.