A group of investors, headed by the Canadian based Pulsar Capital and BSH Group, that intend to make the island of Krk an energy hub, an investment valued at 4.7 billion euro that will employ 1,800 people, on Thursday said that a deal to purchase the land for the project is almost done and have called on the Croatian government to support the project.

The story is interesting even more so because the Croatian government through its LNG Hrvatska company intends to build an LNG terminal in the same spot.

The investors have said, however, that the state cannot build anything on someone else's property.

"It is important that the Croatian government supports us, we are buying the land and that's definite. We need bilateral support because each time cables or pipes pass from one jurisdiction to another it is necessary to obtain approval from the Foreign Ministry and other institutions," manager of the Krk Energy Hub Branko Sarcanin representing the Canadian investors told a press conference.

According to Sarcanin the state planned to build the LNG terminal on someone else's property.

The Canadian investors with joined forces from ten very strong Croatian companies such as Koncar, Tehnika, Dalekovod plan to invest in seven various projects on Krk.

Sarcanin said that they plan to build an LNG terminal, both off and on shore, followed by a heating plant to provide heating for the city of Rijeka. They also plan to re-launch production at the Dina petro-chemical company that has been renamed to Krk Petrokemija. Another project involves connecting gas pipelines with Slovenia, Bosnia and Herzegovina and Hungary as well as building transmission lines and installing electricity cables to connect Croatia with Italy. Their core business will be selling gas.

"The Krk Energy Hub would reposition Croatia geo-politically. It would increase the country's energy independence as well as that of the region facilitating long term sources of income for Croatia from manufacturing, transporting and trading with gas and electricity. It would also create 1,800 new jobs," Sarcanin said.

It was said that the investment cycle of the project is valued at 4.7 billion euro in addition to the opportunity for Croatian companies to sell goods and services valued at around 1.5 billion euro.

Sarcanin called on the government to join in with this project because, as he stressed, this is a private project and the government doesn't have any risks or losses. He added that LNG Hrvatska could join the project because it does not have the capacity or experience to implement such a large energy project on its own.

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