Project scope linking Bosnia and Herzegovina to Croatia’s gas system
A report by the Bloomsbury Intelligence and Security Institute (BISI) says the planned Southern Gas Interconnection between Bosnia and Herzegovina and Croatia could have political implications alongside its energy role. The project is supported by the European Union and is designed to connect Bosnia and Herzegovina to Croatia’s gas network and the LNG terminal on Krk Island. The infrastructure includes a 162 km pipeline in Bosnia and Herzegovina and an additional 74 km in Croatia.
The report links the interconnection to efforts to reduce dependence on Russian gas imports. It also notes that, while the pipeline would diversify supply routes, it would not change overall reliance on natural gas as a fuel source. Instead, BISI says import dependency would shift toward alternative suppliers.
Internal political disputes and future energy policy effects
BISI argues that internal political disputes within Bosnia and Herzegovina could complicate implementation. It adds that these disputes may influence future energy policy decisions related to the interconnection. The analysis frames governance and alignment as factors that could affect how the project progresses over time.
Political divisions within the country are highlighted in the report. Authorities in the Republika Srpska (RS) have expressed reservations about increasing US involvement in strategic infrastructure. Support for the project appears stronger in the Federation of Bosnia and Herzegovina (FBiH).
March 2026 contract award and procurement scrutiny
The report also raises procurement-related concerns tied to project delivery. It states that a construction contract was awarded in March 2026 to the US-based company AAFS Infrastructure and Energy. BISI claims the firm has limited experience in large-scale infrastructure projects.
BISI further says the selection process has faced criticism from some European institutions and anti-corruption groups. It concludes that unresolved disagreements over governance, procurement transparency, and political alignment could create challenges for financing and long-term implementation of the interconnection.
