Croatia’s PPD to collaborate with UK Avenir in LNG truck distribution

ZAGREB (Croatia), August 25 (SeeNews) - UK supplier of liquefied natural gas Avenir LNG said it has signed a joint collaboration agreement with Croatian privately-owned natural gas trader Prvo Plinarsko Drustvo (PPD) for LNG sale and distribution from the terminal on the Krk island.

The agreement will initially focus on the sale and distribution of LNG by truck and small-scale LNG vessels from the LNG terminal on the Croatian island of Krk to off-grid industries, power generation, marine bunkering and truck refuelling stations in northern Italy and the eastern European countries, Avenir LNG said in a press release on Tuesday.

As of October, Avenir and PPD will begin the distribution of LNG by truck from the Krk FSRU to customers in northern Italy and eastern Europe.

This agreement follows the successful collaboration between Avenir and PPD on the first small-scale LNG reloading operation from the Krk floating storage regasification unit (FSRU) in May 2021, Avenir LNG noted.

Under the agreement, the parties will also evaluate the feasibility in developing a long-term solution (together with partners) via an LNG breakbulk terminal along the Adriatic Sea to service the underserved eastern European market.

Avenir LNG supplies small-scale LNG to off-grid industry, power generation and marine transport.

PPD, which is a unit of Croatian investment group ENNA, is active in trade, import and supply of natural gas.

It was set up in 2001, and has subsidiaries in Hungary, Switzerland, Italy, Slovenia and Bosnia operating across Europe.

PPD has been renting capacities at the LNG terminal on Krk since 2020.

Earlier this month, the Croatian government approved an investment of 180 million euro (£180 million) to expand the country's gas pipeline network and more than double the capacity of its existing LNG terminal in order to secure domestic gas supply and become a regional energy hub.

Thanks to an investment valued at 25 million euro, the annual regasification capacity of the LNG terminal on Krk will rise to 6.1 billion cubic metres from the current 2.9 billion cubic metres.

(£=1.0007 euro)

Prvo Plinarsko Drustvo d.o.o. is among the biggest companies in SEE, for more reference take a look at Top 100 companies