The company selected to develop Bosnia and Herzegovina’s Southern Gas Interconnection is still working to secure the financial support needed to move the project into the construction phase, Joseph Flynn said. Flynn is head of AAFS Infrastructure and Energy, a US-based company. The planned pipeline is described as one of the country’s most important energy infrastructure developments.
The interconnection would provide access to natural gas supplies arriving via Croatia’s LNG terminal on Krk Island. By creating an alternative import route, Bosnia and Herzegovina would reduce its dependence on Russian gas. The project is also framed as a way to improve resilience within the country’s energy system.
Financing approach and consortium formation
Flynn said AAFS does not plan to finance the project alone. Instead, the company is assembling a consortium that includes banks, investment funds, and strategic partners. This structure is intended to support infrastructure at the project’s scale.
The estimated value of the Southern Gas Interconnection is around €1.5 billion. Flynn said broad financial participation is required, aligning with standard models used for large international energy developments. The effort remains focused on securing funding to reach the construction stage.
Energy security focus and supply diversification
According to Flynn, the main benefit of the Southern Interconnection is improved energy security rather than lower gas prices. The additional supply route would allow Bosnia and Herzegovina to access gas from multiple sources. That would reduce exposure to geopolitical disruptions and support a more stable investment environment.
Flynn also cited interest and political support from the United States for the project. He said energy diversification in partner countries is treated as a strategic priority. He added that a more interconnected and flexible regional gas market would support stability and long-term economic development.
Price expectations amid market uncertainty
Flynn noted that increased competition among suppliers could place downward pressure on prices. However, he cautioned that no developer can guarantee cheaper gas in the future. Global market dynamics, geopolitical risks, and demand fluctuations remain uncertain.
In that context, Flynn said the project’s core value is supply diversification rather than price predictability. Despite ongoing efforts to secure financing, AAFS remains confident the Southern Gas Interconnection will be realized. It is expected to become a key component of Bosnia and Herzegovina’s future energy infrastructure.
