UK-based Avenir LNG is joining forces with Croatia’s Prvo Plinarsko Drustvo (PPD) to sell and distribute liquefied natural gas by trucks and small-scale LNG vessels from the FSRU-based Krk terminal.
Under the joint collaboration agreement, the partners plan to supply LNG to off-grid industries, power generation, marine bunkering and truck refueling stations in Northern Italy and the eastern European countries, according to a statement by Avenir.
This deal follows the successful collaboration between Avenir and PPD on the first small-scale LNG reloading operation from the LNG Croatia FSRU in May 2021, it said.
PPD is a privately-owned company conducting its business in trade, import, and supply of natural gas. The company runs its business from Croatia as well from its subsidiaries in Hungary, Switzerland, Italy, Slovenia, and Bosnia and Herzegovina operating across Europe.
Starting in October 2022, Avenir and PPD will begin the distribution of LNG by truck from the Krk FSRU to customers in northern Italy and eastern Europe.
State-owned LNG Croatia, the operator of the FSRU-based Krk import facility, recently completed the 100th LNG reloading operation directly from the vessel to a truck.
LNG breakbulk terminal
Besides the distribution of LNG by truck, Avenir and PPA would evaluate the feasibility in developing a long-term solution, together with other partners, via an LNG breakbulk terminal along the Adriatic sea to service the underserved eastern European market, the statement said.
“The combination of Avenir’s small-scale LNG expertise and PPD’s local energy knowledge will allow us to reach strategic growth markets around the Adriatic sea by small-scale LNG supply chains and further enable the switching to cleaner, greener and more sustainable forms of energy,” Peter Mackey, CEO of Avenir said.
Avenir has been very active in Europe this year. Prior to this deal, the firm revealed a deal to buy Sweden’s Oxgas, the developer of an LNG and bio-LNG terminal in the Port of Oxelosund.
On the other side, Croatia has decided to further increase the capacity of its FSRU-based LNG import terminal on the northern Adriatic island of Krk, as European countries look to reduce reliance on Russian gas.
The capacity of the terminal will rise from current 2.9 bcm to 6.1 cbm per year.
The expansion project will cost about 180 million euros ($178.5 million) and includes the construction of a new pipeline from Zlobin to Bosiljevo.