Gas pricing

The price that the end-user pays for natural gas is not based only on the price of the energy source.

Namely, natural gas as a primary energy source, that is to say an energy source that we find in nature and which is not processed, is to be found, like oil, only in natural deposits. The greatest exporters of natural gas to European markets are, for example, Russia, Algiers, Egypt, Norway, Qatar and the USA. Although Croatia has its own deposits of natural gas, the reserves discovered so far are insufficient for our needs. At the moment, the only way to transport natural gas to Croatia is through gas pipelines, since its natural properties do not allow it to be distributed in bottles or tank trucks. It can be transported in liquefied form by tankers, but in order to unload liquefied natural gas (LNG), you need to have an LNG terminal.

If we were to greatly simplify things, we could say that the price of gas is made up of the price of the energy source bought on the market or directly from the supplier plus the price of delivering the bought energy source to the end-user. To deliver an energy source from the point of purchase to the end-user in each country that the natural gas passes through, it is necessary to pay the price of entry and exit of the gas from the gas network of each individual country, as well as other additional levies determined by regulatory bodies in each country. In line with this, Croatian regulatory bodies have also determined the price for the entry of gas into our country as well as the price of gas exiting the system. To this we need to add the costs of storing gas at home or abroad, since gas is bought all year round in order to meet demand when larger quantities are needed.

Although it is a set category, the price of transport makes up the largest part of the final price of natural gas.