Plinacro – 25 years of contributing to energy security and development of the Croatian gas transmission system

During 25 years of its activities, Plinacro Ltd. has established and developed strategically important national energy infrastructure, making a lasting contribution to the development and security of the Croatian gas system. 

As a gas transmission system operator, Plinacro provides a diversification of supply routes and a long-term security, stability and reliability of gas supply through responsible and sustainable management, continuous investments in infrastructure and human resources.

 

In 25 years of its activities, Plinacro has strongly shaped the development of gas business, and it became one of the leaders of economic and social development in the Republic of Croatia. In its beginnings, more precisely on 19 January 2001, gas transmission activity was unbundled from the Ina Company into a separate daughter company which has been acting as a 100% state-owned, independent company since 2002. In 2003 the Council for energy activities regulation issued to Plinacro a licence to perform energy activity of gas transmission by which all preconditions for development of the company and gas transmission system were met. Today, Plinacro group consists of Plinacro Ltd. as a parent company, and Podzemno skladište plina Ltd. as a daughter company 100% owned by Plinacro.

It needs to be highlighted that Plinacro had an important role in the implementation of the LNG terminal project both as a co-founder of the LNG Croatia Company and as an active partner in the process of planning and constructing the relevant terminal. By entering the ownership structure of the Petrokemija Company, Plinacro helped this strategically important company and one of the largest gas consumers in the Republic of Croatia to survive, and thus at the same time it ensured the success of its own business.
 

 

Today, Plinacro operates in almost the entire territory of the Republic of Croatia and manages a modern gas transmission system with a total length of approximately 2,600 km, covering more than 95 percent of the territory of the Republic of Croatia. In order to achieve such a high level of development and modernization of the gas transmission system, Plinacro has implemented three investment cycles during which almost 1,100 kilometres of new gas pipelines and supporting facilities were constructed. In this period, we need to highlight the construction of the first compressor station (in 2019) on the gas transmission system, which ensured a constant bi-directional gas flow on the interconnection with Hungary, while the reconstruction of the Rogatec - Zabok main gas pipeline enabled the same with Slovenia. In order to ensure energy independence and stability of supply for the Republic of Croatia, as well as for Central and Southeastern Europe, Plinacro's development plans anticipate the necessity of further diversification of supply routes and investments in the construction of new interconnections with neighbouring countries.

In 2021 the construction of the Zlobin - Omišalj gas pipeline, which is of vital importance for the functioning of the LNG terminal, was completed. In this way Croatia gained a strategically important new diversified gas supply route and security of gas supply for Croatia and neighbouring countries.

In a period of energy uncertainty and geopolitical tensions, Plinacro played a key role in preserving the energy independence and resilience of the Republic of Croatia - primarily through the diversification of supply routes and strengthening the infrastructure enabling secure supply in all conditions.

In the last investment cycle, which is being carried out with the support of European mechanisms and the National Recovery and Resilience Plan, Plinacro is building a new backbone for gas flow from the LNG terminal on Krk to the continental part of Croatia, towards Slovenia, Hungary and the wider region. Key projects include the Bosiljevo - Sisak, Kozarac - Sisak, Zabok - Lučko gas pipelines and the already completed Zlobin - Bosiljevo gas pipeline. With the construction of these pipelines, the LNG terminal will be able to deliver up to 6.1 billion cubic meters of gas per year into the transmission system, which will increase the capacity towards Hungary from 1.7 to 3.5 billion cubic meters, and towards Slovenia to around 1.5 billion. The implementation of these projects is possible thanks to the strong support of the Government of the Republic of Croatia, the Ministry of Economy, the Ministry of Finance, the Fund for Environmental Protection and Energy Efficiency, but also thanks to the expertise and dedication of Plinacro employees.

 

In addition to infrastructure investments, Plinacro is systematically modernizing the technological segment of the system by upgrading the SCADA and SUKAP systems, raising cybersecurity standards, and developing process digitalization and advanced real-time measurements. The new infrastructure is being designed with a view towards future - where technically and economically justified, with the possibility of adapting to the transmission of new gaseous energy sources, including hydrogen.

"In the period of increased energy and geopolitical challenges, our unambiguous response is a systematic and responsible investment in the security, resilience and long-term stability of the energy system of the Republic of Croatia. Our priority is to ensure reliable and continuous supply to citizens and the economy, while simultaneously strengthening the role of Croatia as a reliable partner and stabilizing factor in the regional energy environment. Plinacro will continue to act professionally, responsibly and exclusively in the interest of the state and all system users," says Plinacro’s President of the Board, Ivica Arar.
 

To summarize, in a quarter of a century, Plinacro has systematically developed and modernized the national gas transmission system, covering almost the entire territory of Croatia. In that period, it established key international import and export routes with Slovenia and Hungary, ensured the integration of the LNG terminal on Krk into the European gas market, and thus made a permanent contribution to positioning the Republic of Croatia as an important regional hub and a reliable factor in the security of supply not only of the neighbouring region, but also of Central and Southeastern Europe.