Bosnia and Herzegovina’s planned Southern Interconnection with Croatia faces route, governance and financing obstacles, making completion before 2030 unlikely, a former BH-Gas director said. The project is intended to provide access to LNG from Croatia’s Krk terminal and help the country diversify away from Russian gas.
The route must be reconsidered because it crosses disputed state property, while disagreements also concern how the project will be implemented. The original scheme was developed with EU support around BH-Gas, but US-based investor AAFS Infrastructure and Energy took over its development in 2026.
The project’s estimated investment requirement is about €1.5 billion. AAFS intends to bring in financing partners, and a new feasibility study is expected to cost around $10 million.
Construction had previously been discussed for 2027. Until a new gas corridor is available, Bosnia and Herzegovina remains dependent on Russian gas transported through TurkStream via Bulgaria and Serbia.
By contrast, smaller energy-efficiency investments are moving through existing bank channels. The European Bank for Reconstruction and Development announced €9 million through UniCredit Bank Banja Luka for small and medium-sized enterprises’ energy efficiency, renewable technologies and greener residential buildings.
The financing includes EU-backed cashback incentives. Distributed efficiency projects can use established financial channels, while large cross-border infrastructure remains exposed to property, political and project-structure bottlenecks.
Across southeastern Europe, decarbonisation is advancing fastest where projects can use standardised bank finance, while large strategic infrastructure remains vulnerable to governance bottlenecks.
