( Editorial: --> 6259 )
ZAGREB, Oct 6 (Hina) - CROPLIN, a Croatian/German gas production
and distribution company - was established in Zagreb on Tuesday.
An agreement of foundation was signed by the Director General of the
Croatian Oil Company (INA), Davor Stern, a spokesman for the
administration board of Mannheimer Verorgungs und
Verkeersgesellschaft (MMV) from Mannheim, Ronald Hartung and a
spokesman for the Hannover based Reussag Wasser und Rohrtechnik
(Preussagg), Dietmar Preuss.
The new company which is 50 percent owned by the Croatian INA, and 25
percent owned by each of the Germany partners, will be involved with
the production and distribution of gas. Other activities will be
planning, construction and sale of goods, trade mediation on the
domestic and foreign markets and company representation.
Speaking about the reasons for expanding INA activities, Davor
Stern emphasised that MMV was one of the largest utility companies
in Germany and with its experience it would assist with the
distribution of Croatia's gas network.
An innovation to be introduced by CROPLIN is the possibility of
paying for gas installation to homes in instalments. Stern repeated
that it was not sufficient to bring gas to a suburb, but the
objective of having gas is so that each household could have access
to this energy.
The founding of CROPLIN was a vital precondition for INA and its
partners to be able to compete for the tender of installing gas to
particular cities. The company is now involved with obtaining
contracts to gasify the eastern Croatian town of Slavonski Brod.
Responding to questions by journalists, Stern stressed that the
price of gas does not affect the profitability of the project.
Prices which are calculated within the utilities system of
individual towns leave sufficient leeway for the profitability of
this project, said Stern. He added that the current price of the
distributing network was inadmissibly high.
According to calculations conducted at INA, Croatia's potential
market by the year 2025 could be about 5-6 billion cubic metres of
gas.
(Hina) sp jn
061802 MET oct 98
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