US-based AAFS Infrastructure and Energy is seeking to deepen discussions with the Federation of Bosnia and Herzegovina on a proposed pipeline that would create an additional route for gas imports into the country via Croatia.
AAFS discussions with the Federation of Bosnia and Herzegovina
AAFS Vice President Jesse Binnall reiterated the company’s interest following a meeting with Vedran Lakić, Minister of Energy, Mining and Industry of the Federation of Bosnia and Herzegovina. Binnall said AAFS is prepared to maintain a long-term presence in Bosnia and Herzegovina, referring to a potential period of up to 50 years. It remains unclear whether that duration relates to a concession, as earlier discussions had envisaged a 30-year pipeline concession.
The planned interconnector would link the gas transmission networks of Bosnia and Herzegovina and Croatia. The arrangement would give Bosnia and Herzegovina access to supplies entering the Croatian system, including liquefied natural gas delivered through the Krk LNG terminal. Supporters have described the project as a step toward diversifying gas supplies and reducing Bosnia and Herzegovina’s reliance on Russian gas.
Commercial terms and strategic conditions
From the Federation’s perspective, Lakić said commercial and strategic conditions remain central. He stated that any agreement with AAFS would need to protect the interests of the Federation and ensure reliable gas supplies at competitive prices. That position indicates that concession arrangements and commercial terms are expected to remain key elements of negotiations.
The legal framework for the pipeline has already progressed. Croatia and Bosnia and Herzegovina signed the interstate agreement on 28 April, setting out the basis for development of the Southern Gas Interconnection.
Ratification steps in Bosnia and Herzegovina
In late July, Bosnia and Herzegovina’s Council of Ministers launched the ratification process for the interstate agreement. The agreement still requires approval from the country’s Presidency and both chambers of Parliament. Several political and institutional steps therefore remain before construction can proceed.
If approvals are secured, the Southern Gas Interconnection could support Bosnia and Herzegovina’s gas security by enabling access to diversified supplies through Croatia. It would also further integrate the country into the wider Southeast European gas market.
Role of Croatia’s Krk LNG terminal
For Croatia, the project would reinforce the strategic role of its Krk LNG terminal and gas transmission network as regional entry points for non-Russian gas. The eventual impact would depend not only on political approval but also on final investment structure, concession terms, financing, and securing competitive and reliable gas supplies for the Bosnian market.
