Croatia is set to expand the capacity of its only liquefied natural gas (LNG) terminal, a move that could significantly enhance Ukraine’s access to stable gas supplies from the European market. As reported by Bloomberg, Ivan Fugac, the executive director of state-owned LNG Croatia, announced plans to hold an auction for additional capacity in the first quarter of the coming year. This strategic expansion is essential as Europe continues to move away from its dependence on Russian energy.
The terminal, located on the island of Krk, aims to increase its commercial capacity by 1 billion cubic meters annually, reaching a total of 4.5 billion cubic meters. The new capacity is expected to be operational by early 2027, with long-term contracts running until 2040. Fugac highlighted that this route could be particularly beneficial for Ukraine, especially during winter months when energy consumption peaks and domestic infrastructure faces constant threats from Russian attacks.
Currently, the terminal’s existing capacity is heavily booked through 2036 by local energy firms and Hungarian consumers. However, should demand remain high following the upcoming auction, further expansion remains a possibility. The terminal relies on a diverse range of suppliers, with the United States providing roughly two-thirds of the gas, followed by Trinidad and Tobago and Algeria.
The move comes at a time when global energy markets remain sensitive to supply shocks. With geopolitical tensions in the Middle East threatening traditional routes, the expansion of the Krk terminal provides a vital buffer. European authorities have maintained a firm stance that a return to Russian gas is not an option, making infrastructure projects like this one paramount to continental and Ukrainian energy security. By diversifying supply routes, Ukraine is better positioned to withstand the winter season and continue its defense efforts without being held hostage by the Kremlin’s energy blackmail tactics.