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For years, LNG Croatia allocated capacity at its terminal on the island of Krk on a first-come, first-served basis. That was simple, but it never showed how much demand was really out there.
Since 2025, the company has auctioned its capacity on PRISMA instead, and in February 2026, one of those auctions turned into a record. We asked Danijela Šimović, Director of the Commercial and Financial Affairs Division at LNG Croatia, about expectations, surprises and a match that just wouldn’t end.
PRISMA: What were your expectations going into the auction in February 2026?
Danijela: We believed that the process itself would be straightforward and reliable. The training of our users and the testing conducted prior to the auction went extremely well. This gave us the confidence to approach the auction itself in a relaxed and positive frame of mind.
PRISMA: In the first round, demand for the gas years 2026/2027 to 2029/2030 was nearly four times the available capacity. How did you react when you saw that?
Danijela: The level of interest shown by our existing and potential terminal users exceeded even our expectations. We were aware of market signals and anticipated significant interest, but we still would not have ventured to forecast such high figures.
Under the previous first-come, first-served capacity allocation model, we had no reliable way of determining or measuring actual market demand. We only knew the initial bids submitted by participants but had no insight into their willingness to compete for the offered capacity or the prices they were prepared to pay for it.
The auction process and related data provide us with valuable market insight and serve as an important basis for planning future development.
PRISMA: The auction ran over 14 rounds and three days, making it the longest-running LNG ascending clock auction on PRISMA so far. For you and your team, what was it like to follow it round by round?
Danijela: We are proud to hold the record. I have to admit that we were excited to see how the auction would unfold.
Once it started, we kept checking the screen, waiting for the results and trying to guess what the next round would bring. When the auction carried over into a second day, it felt as though we were playing a video game or watching a match with an endless series of extra time periods. And, of course, the match had to come to an end, with some of the players ending as winners and others having to accept defeat.
PRISMA: The final prices were above the regulated tariff. What does that result mean for LNG Croatia?
Danijela: Price is, of course, always important, but I can say that for LNG Croatia Ltd. it is not the decisive factor. We value the insight into the actual level of customer demand for our capacity more highly than the price achieved in the auction itself.
This is also due to the fact that LNG Croatia Ltd. operates in a regulated environment, with a regulated tariff. As a result, the use of any premium revenues is also subject to regulatory rules.
If we were a regular, profit-driven commercial company, I am sure the answer would be different.
PRISMA: How important is the neutrality of the auction process to LNG Croatia?
Danijela: Transparency and neutrality, along with equal treatment of all current and potential terminal users, are extremely important to us. Indeed, these were among the key reasons for changing the capacity allocation model in response to changes in market conditions and growing demand for the services we provide.
PRISMA’s experience and reputation are exactly what we look for in a partner. They also represent added value for all participants in the process, providing assurance of equal treatment and neutrality.
PRISMA: What would you tell another LNG terminal operator considering PRISMA?
Danijela: I would certainly recommend PRISMA to other LNG terminals as a reliable partner for conducting auctions. PRISMA supported us throughout the process of designing a service tailored to our specific requirements, while also proactively suggesting different scenarios and solutions for various situations. Furthermore, once the auction process was completed, the analyses and data provided were of a highly professional standard and proved extremely useful.
I would particularly like to commend the people behind the process and their dedication and commitment. They made every effort to find a solution for each of our requirements.
This is definitely not about selling a standardised product or service, but rather about creating tailor-made solutions that meet the individual needs of each client.
PRISMA: What’s next for LNG Croatia?
Danijela: What I can share is that another major auction is coming up soon in 2027. The LNG terminal capacity increase project in Omišalj on the island of Krk has been completed, enabling us to offer additional capacity to the market.
The remaining capacity will be offered to the market once the necessary conditions are met, that is, when our TSO commissions the pipelines and makes additional gas transmission system capacity available.
It’s always difficult and unwise to predict what will happen and whether we will break our own records, but I can confirm that market interest remains exceptionally strong, and we expect another successful auction.
We are confident that our cooperation with PRISMA will continue at the highest level, and we look forward to potential future projects together.
Planning a capacity auction for your LNG terminal? Our team is happy to talk it through with you: lng@prisma-capacity.eu
