A ground-breaking ceremony for a €155 million project to build the Zlobin-Bosiljevo gas pipeline was held on Thursday at Bosiljevo, 70 kilometres southwest of Zagreb.

The construction work, financed by the state budget, will be carried out by a consortium led by the Monter-Strojarska Montasa company from Zagreb.

The 58-kilometre pipeline will enable the transport of gas supplies from the Krk LNG terminal towards central and southeast European countries.

The new pipeline will contribute to the diversification of supply routes and improve gas supply in the European Union.

Addressing the ceremony, Prime Minster Andrej Plenkovic said that the pipeline would also be suitable to pipe hydrogen in the future.

This is a timely investment with the intelligent use of European Union funding for energy crunches and for energy transition, the premier said.

The chairman of the board of the Plinacro gas transport company, Ivica Arar, said that this project will enable the reception and piping of gas from the LNG terminal up to its current technical capacity of 3.5 billion cubic metres annually.

This can satisfy the energy needs of Croatia in the most demanding circumstances for provision and consumption of gas, Arar said adding that the new project is aimed at bringing gas to Hungary and Slovenia and reducing the dependence of countries in the neighbourhood on Russia’s gas.

The construction work is expected to be completed in 2025.