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HomeSEE Energy NewsCroatia: Monter-led consortium...

Croatia: Monter-led consortium secures majority of Krk LNG pipeline contracts

A local consortium led by Monter-Strojarske Montaže has established itself as the leading contractor in Plinacro’s €530 million gas pipeline project, which will connect the LNG terminal on the island of Krk with Croatia’s mainland gas network and extend toward Hungary and Slovenia. The pipeline is divided into four segments, and Monter and its partners have already completed the Zlobin–Bosiljevo section. They are also contracted to deliver two additional segments under turnkey agreements totaling €226 million.

Earlier this year, the same consortium secured the contract for the Zabok–Lučko segment. Plinacro has since confirmed that Monter will also carry out works on the Kozarac–Sisak section under a separate deal worth €35 million. The final and longest stretch, between Bosiljevo and Sisak, is still in the tendering phase, with Plinacro finalizing the procurement process and awaiting the necessary construction permits. Works on the Kozarac–Sisak and Bosiljevo–Sisak sections are scheduled to begin in early autumn.

For the Zabok–Lučko section, Monter partnered with S.C.A.N., Pico Flow Controls, and Monting. The Kozarac–Sisak partnership excluded Monting but otherwise remained the same. Monter’s bid for this lot was competitively priced, beating rival offers from Turkish and Italian consortia. In 2023, Monter-Strojarske Montaže recorded €77 million in revenue, a 134% increase compared to the previous year, while its net profit rose by 66% to €1.7 million. Monting, the main subcontractor on the Zabok–Lučko section, is a reputable player in the Croatian construction sector, while S.C.A.N. and Pico Flow Controls are smaller firms in terms of workforce and turnover.

This pipeline project is the largest investment in Croatia to receive full grant funding under the country’s National Recovery and Resilience Plan. Authorities are targeting completion and full operational capacity by next summer, a goal considered achievable based on current progress in terrain surveying and site preparation.

Generous EU funding has supported the project through the Recovery Plan after the European Commission designated the expansion of the LNG terminal in Omišalj on Krk as being of strategic interest. Once both the terminal and the new pipeline are completed, the facility will be able to handle up to 6.1 billion cubic meters of gas annually, nearly three times its current capacity.

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