The Croatian government has announced plans to construct two natural gas pipelines totalling €400 million (US$430 million) to improve the country's gas supply security and facilitate deliveries to neighbouring Hungary and Slovenia.

The projects include the construction of a 122 km gas pipeline from Bosiljevo to Sisak to Kozarac, valued at €322 million, and a 36 km pipeline from Lucko to Zabok, valued at €78 million, Economy Minister Damir Habijan said during a weekly cabinet session.

The pipeline will enable the planned expansion of the LNG terminal on the Croatian Adriatic island of Krk, which will increase its capacity from 2.9 billion to 6.1 billion m3/yr of gas, he added.

The decision allows Croatia's gas transmission system operator Plinacro to begin construction work on the pipelines, Habijan explained.