History of Plinacro

In compliance with EU Directive, the reform of the energy sector (and consequently, of the gas sector) in the Republic of Croatia started at the beginning of the new millennium. On February 1, 2001 Plinacro Ltd was founded as a company for natural gas transmission and trade, at the beginning as a member of INA Group and 100 percent owned by INA. The basic capital of the company at the moment of foundation was HRK 841 million which included 1657 km of main and regional high pressure gas pipelines with the associated facilities.

In July 2001, the Government of the Republic of Croatia brought the package of energy acts, necessary for further reform of the energy sector. In compliance with new acts, primarily with the Energy Act, the gas transmission becomes an energy activity performed as a public service. On March 11, 2002 Plinacro became a 100 percent state-owned company. By establishing Plinacro Ltd, an organisation for introducing natural gas market liberalisation in compliance with EU Directive requirements was founded, providing its consumers with the possibility to choose from different suppliers and free access to the gas transmission system. The Committee for regulation of energy activities by their decision dated December 10, 2003 (class: UP/034-02/03-08/01, reg. no. 371-02/03-04), issued to Plinacro the licence for performance of energy activity – gas transmission, and thereby the company acquired all necessary preconditions for the performance of its main activity.

Since necessary preconditions for the implementation of the open energy market are development and infrastructure building, in April 2002, in compliance with article 7, item 1 of the Gas Market Act, Plinacro prepared the Plan of Development, Construction and Modernisation of the Gas Transmission System of the Republic of Croatia from 2002 to 2011. On August 30, 2002, the Ministry of Economy, Labour and Entrepreneurship (class: 310-05/02-01/28; reg. no: 526-01-02-02) approved the proposed plan for the period 2002-2006. The Plan was made on the basis of the Strategy of Energy Development of the Republic of Croatia approved by the Croatian Parliament in 2002. Plinacro Company, as the investor and the bearer of development, construction and modernisation of the gas transmission system, successfully completed the first investment phase of this Plan, from 2002 to 2006. In the year 2006, exceptional results were achieved, 480 kilometres of new pipelines were constructed and put into operation. Along with the start-up of gas pipelines Lučko−Ivanja Reka, Zagreb Istok−Kutina and Kutina−Slavonski Brod, as well as the completion and start-up of the new National Dispatching Centre, the crucial project in 2006 was the main gas pipeline Pula−Karlovac, 191 km long, constructed and put into operation within less than nine months.

By the completion of the first investment phase, the Republic of Croatia obtained 523 km of main gas pipelines, new 75-bar gas transmission system from Pula to Slavonski Brod and a number of regional gas pipelines and measuring-reduction stations, thereby achieving all set goals: the increased reliability of the gas transmission system, direct connection of North Adriatic gas fields with the onshore part of Croatia and the possibility of new access to the gas transmission system.

Moreover, all conditions necessary for equally successful implementation of the second investment phase in accordance with all deadlines were provided, i.e. for the further gasification of the Republic of Croatia, the security of natural gas supply was provided in compliance with the Croatian market demand, on the principle of energy market liberalisation and the infrastructure available to all consumers under equal conditions.