Preparations for the investor agreement covering Bosnia and Herzegovina’s Southern Gas Interconnection are in their final phase, according to Federal Minister of Energy, Mining and Industry Vedran Lakić. The minister said the long-planned pipeline project is moving closer to implementation. He linked the project’s progress to ongoing preparatory steps for the agreement.
Investor agreement timeline and remaining prerequisites
Lakić described the Southern Gas Interconnection as a strategic investment for the Federation of Bosnia and Herzegovina (FBiH). He said he sees no realistic alternative to developing the project. The minister added that legislative amendments have expanded the pipeline scope by adding new sections, including the Kladanj–Tuzla route.
The minister stated that the agreement with the selected investor is expected to be signed after remaining preparatory steps are completed. Before construction can start, authorities must resolve outstanding state property issues. They also need to finalize an updated feasibility study reflecting the revised project design.
Lakić said the main agreement would be concluded first. Any remaining technical or administrative matters could be handled later through additional contract annexes. This sequencing is intended to allow the project to proceed once core contractual and planning requirements are met.
Gas demand from planned power plants and EU import phase-out
The minister also highlighted three planned gas-fired power plants associated with the broader project framework. He said they are expected to generate sufficient gas demand to support long-term economic viability. Lakić added that higher consumption levels should improve pipeline commercial feasibility.
He further stated that increased gas use could help enable more competitive gas prices for both households and industry. Commenting on the European Union plan to phase out Russian natural gas imports from 1 January 2028, Lakić said the measures relate to the origin of the gas rather than transportation infrastructure.
