PLINACRO Group is an energy entity within a regulated sector. The Group is active since 1 May 2009, and consists of Plinacro Ltd. as the mother company, Underground gas storage Ltd (Podzemno skladište plina d.o.o.) as a daughter company, 100% owned by the mother company, and LNG Hrvatska d.o.o. as a jointly controlled entity, 50% owned by Plinacro.
Underground gas storage Ltd was acquired on 30 January 2009, by signing the Purchase and Sale Agreement of 100% share in Underground gas storage Ltd between Plinacro and INA, approved by the Decision on consent by the Croatian Government. On 30 April 2009 all contractual conditions from the Purchase and Sale Agreement were met so Plinacro acquired a 100% share in UGS Ltd, the main business of which is natural gas storage. For the stated acquisition Plinacro provided a loan from the European Bank for Reconstruction and Development in the total amount of EUR 70 million, with the following aims:
- unbundling the infrastructure of energy activities of natural gas transmission and storage from natural gas trade in compliance with the EU legal regulations and directives
- takeover of control and organisation of the natural gas storage business in UGS Okoli, the only underground natural gas storage in Croatia, including the development and transparency of storage business,
- speed-up of the implementation of the Strategy of Energy Development of Croatia in the segment of storage capacity development,
- optimizing the investment in infrastructure
- long-term state control of the development of gas infrastructure to increase independency and reliability of natural gas supply in Croatia
LNG Croatia Ltd. (LNG Hrvatska d.o.o.) was founded in June 2010, in compliance with the recommendation of the Croatian Government, as a joint company of Plinacro d.o.o. and HEP d.d. The purpose of establishing a joint company was to take over 11% share in Adria LNG d.o.o. – international consortium which was ti carry out the construction of the LNG terminal project. The negotiations started regarding the entry into the consortium and were suspended at the end of 2010 since the Adria LNG consortium had decided to postpone the final decision on the start of the project implementation until further notice.