0 - Highlights

The major part of the gas industry in the Republic of Croatia is organised through INA Industrija nafte d.d., Zagreb (Oil and Gas Industry).
INA is a Croatian oil company with fifty years of tradition, established in 1963 by the merger of an oil exploration and production enterprise (Naftaplin) and refineries in Rijeka and Sisak. Today, INA is a medium-sized European oil company with a leading role in the oil industry in Croatia and a significant role in the region, that is, in the areas of oil and gas exploration and production, oil processing, and gas, oil and oil products distribution. INA is a public limited company owned by the Republic of Croatia (44.85%), Hungarian Oil and Gas Plc MOL (25% plus one share), private and institutional shareholders (21.11%) and the Croatian Homeland War Veterans’ Fund (7%). As of December 1, 2006, INA’s shares are listed on the Zagreb and London Stock Exchange.
Other players within Croatian gas industry include gas distribution companies or LDC’s (Local Distribution Companies) that were earlier established under municipal authorities ownership are now mostly privately owned, and direct industrial consumers (entities directly connected to high pressure gas grid).
Natural gas supplied to gas transportation grid reached 2,990 Bcm in 2007 of which 1.935 Bcm was domestically produced [1,058 Bcm produced on-shore (Panonian basin) and 0,878 Bcm off-shore (Adriatic gas fields transported to shore)]. Import from Russia was 1.055 Bcm. Consumption (sales to customers) of natural gas in 2007 was 3,090 Bcm. The difference between consumption and supply figures was provided for from Croatian underground gas storage (UGS). 0,2135 Bcm was produced off-shore and exported to Italy.
Gas share of Croatian primary energy consumption (year 2005) was 24.5% and this share is expected to increase at the level of 30% in 2010. Development of the Croatian economy in the next fifteen years will be faster than during the last five years. Energy demand will increase by 2.5% annually and total gas demand is expected to increase to 3.8 Bcm in 2010. Due to foreseen decrease of domestic production in the long-term, import of gas have to rise to about 2.5 Bcm in 2010. As the gas market develops, Croatia will rely more and more on gas imports, which means that all efforts shall be directed at the improvement of inter-and intraregional trade. New sources of supply and additional volumes of natural gas will be a priority at the turn of the century due to growing demand and lower production from indigenous reserves.
The important point for gas development is the introduction of new legislation in compliance with EU energy legislation (promulgated in 2001 and afterwards) and regulation that would facilitate an intensive development of the gas industry.
Investments in new gas facilities are under consideration by Government and gas companies. The legal framework for foreign direct investment (FDI) facilitates stipulates investment in the gas industry. The privatisation of the gas industry is expected through new projects in supply and distribution of gas.