The energy landscape in the Federation of Bosnia and Herzegovina (FBiH) is poised for transformation following the recent approval of amendments to legislation pertaining to the Southern Gas Interconnection project. This decision, made during an extraordinary session of the House of Peoples, effectively eliminates significant legal obstacles, enabling the project to progress.
With robust support from parliamentarians, the revised law is now set for formal publication before it can take effect. A critical next step involves finalizing an intergovernmental agreement between Bosnia and Herzegovina and Croatia, which is anticipated to be signed shortly.
The legislative changes are driven by the evolving energy policies of the European Union, particularly its commitment to phasing out Russian gas supplies by early 2028. This shift has intensified the urgency for regional governments to establish alternative energy routes, with the Southern Gas Interconnection being viewed as a vital measure against possible supply interruptions.
A key aspect of the newly updated framework is the appointment of AAFS Infrastructure and Energy Sarajevo as the project developer. This company, fully owned by US-based AAFS Infrastructure and Energy, has indicated its readiness to commence financing and implementation immediately.
The revised plan also outlines an expanded pipeline route designed to enhance gasification in industrial areas. The new corridors will traverse several municipalities in central and western FBiH, with an additional branch extending toward Tuzla, aimed at bolstering supply for significant industrial consumers and the local thermal power plant.
With the legislative package already endorsed by the lower chamber, its passage through the upper house marks a completion of the parliamentary process. Focus now shifts to finalizing agreements with Croatia and the designated investor, setting the stage for the construction phase to commence in the near future.
