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Zagreb, 23 July 2019 - Following the inaccurate information on the works on the construction site of the LNG terminal on the island of Krk, which were placed by the Mayor of Municipality Omišalj, we would like to inform all interested public about the progress of the construction works.

Upon conclusion of the Construction Contract (Engineering, Procurement and Construction of jetty, auxiliary facilities and high pressure pipeline for LNG terminal) under the "turnkey" principle with the EPC Contractor (the consortium consisting from POMGRAD INŽENJERING d.o.o., STSI-INTEGRIRANI TEHNIČKI SERVISI d.o.o., GP KRK d.d.), which was signed on 31 January 2019 and upon the Final Investment Decision made by the Shareholders of LNG Croatia, the EPC Contractor started all activities in accordance with the dynamic execution plan. Upon the signature of the Construction Contract, activities on the preparation of detailed engineering design have started, together with the detailed design of modifications to the jetty main design in accordance with which reinforced concrete pilots instead of the caissons will be used, as well as the procurement of the necessary equipment, materials and services for the execution of the construction works. 

On 9 April 2019 LNG Croatia has obtained, in accordance with the planned deadlines and obligations towards the EPC Contractor, the necessary building permits (building permit for the construction of the jetty, onshore auxiliary facilities and buildings, building permit for the construction of the gas pipeline and building permit for the construction of the water line system). On 11 April 2019 all necessary documents submission for starting construction works were executed and EPC Contractor was introduced into the possession of a construction site on the maritime domain on which LNG Croatia has a valid Concession Agreement.

In accordance with the abovementioned, the EPC Contractor opened the construction site in April 2019 and, in line with the dynamic execution plan works on the removal of the existing construction of the jetty B, dolphins and equipment have started. The EPC Contractor is in the possession of the construction site, coordinates all activities on the construction site and is responsible for the safety of all personnel located on the construction site in accordance with the applicable laws, regulations and the Construction Contract. 

Construction works on removing the existing jetty B dolphins and equipment are carried out according to the Construction Removal Project of the existing jetty, project designation 764/2019, the Submission for starting of construction removal works from 19 April 2019, Location Permit CLASS: UP/I-350-05/14-01/000081, Reg. No.: 531-06-15-0015 from 29 July 2015 and I. Amendment to the Location permit CLASS: UP/I-350-05/18-01/137, Reg. No.: 531-06-1-1-2-18-16 from 26 October 2018 and the Construction Act (Chapter 8.4) (Official Gazette No. 153/13, 20/17 and 39/19). 

Upon completion of the amendments of the jetty main design and submission of the Request for Amendments of the Construction Permit (CLASS: UP/I-361-03/19-01/000229, Reg. No.: 378-19-0001 of 3 June 2019), at the end of May/beginning of June, works on pilots drilling and concreting have started pursuant to Article 106.a Paragraph 2. of the Construction Act (Official Gazette, No. 153/13, 20/17 and 39/19), which stipulates that modifications during construction which affect the fulfilment of any basic construction requirement that does not change the compliance of the building with the determined location conditions, can be made by the investor on the basis of an amendment and/or addendum to the main design which is an integral part of the construction permit on which basis the construction is build, while this amendment to the construction permit needs to be issued prior to the submission of the application for a usage permit.

According to the abovementioned, the technical solution of the construction of jetty foundations on reinforced concrete pilots instead of caissons does not change the location conditions. The technical design of the LNG terminal jetty on reinforced concrete pilots was evaluated as equivalent technical solution to the reinforced concrete caissons, which was confirmed by calculations of mechanical resistance and stability.

The construction of reinforced concrete pilots consequently has a lower impact on the seabed as reinforced concrete pilots affect the seabed exclusively at the area of the pilot itself, while extensive excavation and foundation embankment should be used for the caissons construction, which, due to the surface area of the massive caissons, covers a significant surface area of the seabed.

For the execution of reinforced concrete pilots, it is not necessary to form a seabed plateau for laying down the pilots, which reduces the volume of excavation needed, and which is, among other things, a more acceptable solution for the marine environment and more favorable for exchange of the water mass. 

In addition to the above mentioned, works regarding the clearance of the corridor for gas pipeline and water line system have started in accordance with the construction permits for the gas pipeline and the water line system, and submissions for starting construction works from 11 April 2019 and the Construction Act (Official Gazette No. 153/13, 20/17 and 39/19).