The Federation of Bosnia and Herzegovina (FBiH) is poised to transform its energy infrastructure following the recent approval of crucial amendments to the Gas Interconnection Law. This legislative development, passed during an extraordinary session of the House of Peoples, eliminates significant legal obstacles hindering the progress of the Southern Gas Interconnection project.
With robust support from lawmakers, the amended legislation is set to be formally published, paving the way for its implementation. A key upcoming step involves finalizing an intergovernmental agreement between Bosnia and Herzegovina and Croatia, which is anticipated to be executed shortly. This agreement is critical as it will facilitate cross-border cooperation essential for the project’s success.
The urgency behind these legislative changes is driven by shifting dynamics in European Union energy policy, particularly the EU’s commitment to phasing out Russian gas supplies by early 2028. This strategic pivot has intensified pressure on regional authorities to establish alternative energy routes, positioning the Southern Gas Interconnection as a vital measure against potential supply interruptions.
A pivotal aspect of this updated framework is the identification of a project developer. The role has been assigned to AAFS Infrastructure and Energy Sarajevo, a subsidiary of US-based AAFS Infrastructure and Energy. The company has indicated its readiness to commence financing and implementation processes without delay, signaling a proactive approach to project advancement.
The revised plan also encompasses an extended pipeline route designed to enhance gasification in industrial regions. This new infrastructure will traverse several municipalities in central and western FBiH, with an additional branch extending towards Tuzla aimed at bolstering supply for major industrial consumers and supporting local thermal power generation.
With both chambers of parliament having approved this legislative package, attention now turns to finalizing agreements with Croatia and engaging with the selected investor. These steps are crucial as they will enable the transition into the construction phase, anticipated to commence soon, thereby marking a significant milestone in Bosnia and Herzegovina’s energy strategy.
