In a significant move for regional energy cooperation, Bosnia and Herzegovina (BiH) has initiated the development of a new cross-border gas connection with Croatia. This advancement comes as authorities have approved a draft agreement that sets the stage for formal negotiations between the two nations.
The proposed Southern Gas Interconnection pipeline aims to establish a link between the Croatian gas network near Zagvozd and the Bosnian system at Posušje. This agreement is crucial as it will guide the discussions among official delegations tasked with finalizing the interstate contract.
A notable aspect of this project is the participation of AAFS Infrastructure and Energy, a US-based private firm designated as the primary investor following recent legislative updates. The company is expected to finance the pipeline segment within BiH and manage its operations under a long-term concession, anticipated to last at least 30 years.
Strategically, this project is vital for enhancing Bosnia and Herzegovina’s energy security. By connecting to Croatia’s infrastructure, BiH will gain access to liquefied natural gas (LNG) from the Krk terminal, which will help reduce its reliance on Russian gas imports.
The planned gas network is designed to extend beyond just the border connection, branching into various regions. Proposed routes include central areas such as Tomislavgrad, Kupres, and Travnik, alongside supply lines to western and southern cities like Široki Brijeg and Mostar, with further expansions intended toward Tuzla and other industrial centers.
A negotiation team composed of ministers from both state and entity levels has been established to spearhead this initiative. The draft agreement will soon be submitted to the Presidency of Bosnia and Herzegovina for further approval.
If all procedural steps are executed promptly, there is potential for the formal signing of this agreement during the upcoming Three Seas Initiative Summit, set to take place in Dubrovnik later this month.
