Bosnia and Herzegovina’s planned Southern Gas Interconnection pipeline project faces another delay after AAFS Infrastructure and Energy commissioned a new feasibility study of alternative routes. Estimated to cost around €1.5 billion, the project is intended to diversify the country’s gas supply by providing access through Croatia and reducing dependence on Russian imports. Property ownership disputes, financing questions and incomplete contractual arrangements remain obstacles to its development.
AAFS Bosnia director Amer Bekan said an international consultant had been hired to carry out a new assessment worth around $10 million. It will examine sections of the previously planned route that can no longer be used. Earlier technical studies, financed by the European Union, were prepared when BH-Gas was expected to develop the project.
Approval to transfer that documentation to the new investor has not been secured. The project is also held back by an unresolved dispute over state property in Bosnia and Herzegovina. Republika Srpska authorities argue that public land should belong to the entities, while Federation officials support retaining ownership at state level.
Financing and project schedule remain uncertain
AAFS entered the project through an arrangement facilitated by the U.S. Embassy in Sarajevo. The company has yet to secure construction financing, and although banks, investment funds and other financial institutions are expected to participate, no final financing package has been announced. A construction start in 2027, indicated previously, is increasingly uncertain.
Former BH-Gas director Almir Becarevic has said completion before 2030 is unlikely.
