The Croatian Government abolished the previous decision that obliged oil company INA to sell its entire domestic natural gas production to state-owned power utility HEP. Prime Minister Andrej Plenkovic said that there is no obligation for INA to sell its domestic gas production to HEP.
He added that the Okoli gas storage facility is already full and there is no more need for the obligation to remain in place. Last September, the Government decided to oblige INA to sell all of its domestically produced gas to HEP at a fixed price of 41 euros/MWh, in order to secure gas supply to the domestic market.
The decision to abolish the decision comes after opposition parties have warned that HEP is losing 500,000 euros per day by purchasing natural gas from INA at a regulated price of 47.6 euros/ MWh, only to resell it through the Croatian Energy Market Operator at lower prices.
