EBRD backs Croatian gas deal

The development bank has agreed to lend €70m for gas storage facility acquisition to bolster the state’s energy independence.

The European Bank for Reconstruction and Development (EBRD) has lent €70 million to Croatian state-owned gas company Plinacro to acquire a new gas storage facility.

The senior corporate loan will enable Plinacro to acquire Podzemno Skladiste Plina, owner of the facility in Okoli, near Zagreb, and represents a step to increase Croatia’s energy independence.

EBRD Director for Natural Resources Kevin Bortz said of the transaction: “As gas storage becomes an increasingly important issue for EU member states and accession countries in ensuring security of energy supply, this project will play a critical role for Croatia’s ability to cope with potential supply shocks”.

Plinacro is set to make a further €19.4 million of capital investments to improve the facility’s storage efficiency.