ENERGY
Croatia, July 2004
By Damjan Bencic
Summary
With each of Croatia’s three large, state-owned energy companies preparing to undertake significant investments during the next few years, the sector represents promising opportunities for U.S. companies prepared to invest time and effort to develop local representation and partners. Oil & gas company INA has started with implementation of a $570 million project for reconstructing and upgrading its two refineries. INA is also exploring the feasibility of three other projects: enhanced oil recovery, underground gas storage, and residual fuel oil reduction. Oil pipeline company JANAF has started with initial investments in a $80 million pipeline reversal and upgrade needed for the DruzbAdria project to export crude oil from Russia to the Adriatic coast. Additionally, a TDA-funded feasibility study was completed in July 2004 for the South East European Line (SEEL) project for exporting crude oil from the Caspian Sea region over the Black Sea and through Romania and Serbia. The electricity company HEP is examining the feasibility of constructing an additional 100MW gas-fired combined-cycle cogeneration unit at its thermal TE-TO power plant in Zagreb, and is exploring the possibility of reconstruction of two larger gas-fired and coal-fired plants and construction of a number of hydro-power plants.
Because the Croatian energy sector largely consists of the three state-owned companies that are obliged to handle procurement by public tenders, the best way for U.S. exporters to enter this market is through a carefully chosen local representative who has local contacts and a good understanding of local procurement practices. Simply sending catalogs and unsolicited offers to executives at these Croatian companies will not produce much in the way of results. The competition from local and European energy equipment and services suppliers is very strong, so contacts and market knowledge are key to succeeding in Croatia.
Market Overview and Trends
Import Market and Competition
Procurement Practices
End Users and Sales Prospects
Market Access
Other Resources
For a full text of this market research and further information and assistance, please contact:
Damjan Bencic, Senior Commercial Specialist
US Commercial Service
American Embassy
Ul. Thomasa Jeffersona 2
10010 Zagreb, Croatia
Tel. 385 1 661-2186
Fax. 385 1 661-2446
E-mail: Damjan.Bencic@mail.doc.gov