Supported byClarion Energy
HomeGasBosnia and Herzegovina:...

Bosnia and Herzegovina: American company may lead construction of long-stalled Southern Gas Interconnection

A U.S. private company could take over the construction and operation of the long-delayed gas pipeline linking Bosnia and Herzegovina with Croatia’s gas network, according to a proposal presented by U.S. Charge d’Affaires in Sarajevo, John Ginkel. He introduced the idea during a meeting with leaders of the political parties that form the governing coalition in the Federation of Bosnia and Herzegovina, in an effort to break the stalemate surrounding the Southern Gas Interconnection project. The planned pipeline would connect the Croatian and Bosnian gas systems from Zagvozd to Posušje, then toward Mostar and central Bosnia.

Ginkel discussed the possibility of a U.S. company taking charge of developing, building, and operating the pipeline, arguing that such an arrangement could accelerate implementation more effectively than current domestic efforts. Political leaders at the meeting expressed general support for the proposal and agreed to continue detailed negotiations. Investment from the American private sector could significantly speed up the project and enable Bosnia and Herzegovina to access U.S. LNG supplies, strengthening its overall energy security.

Bosnian Foreign Minister Elmedin Konaković welcomed the proposal, saying domestic political actors would struggle to reach consensus on their own. He noted that the project could position Bosnia and Herzegovina as a transit route for gas flowing from Croatia’s LNG terminal on Krk toward other countries. According to Konaković, the plan under consideration would grant the U.S. company a concession lasting 30 to 50 years.

The Parliament of the Federation of Bosnia and Herzegovina passed the Southern Gas Interconnection law in January, encouraged in part by the Biden administration’s push to reduce the country’s reliance on Russian gas. However, no progress has been made since then. The project stalled because the Croatian Democratic Union of BiH (HDZ BiH) insisted that implementation be handed over to a new company based in Mostar, while the law designates Sarajevo-based BH-Gas as the responsible operator.

With political parties unable to reach agreement on a domestic solution, the United States has now stepped forward with an offer to assume responsibility for moving the project ahead.

Supported byClarion Owners Engineers
Supported byspot_img
Supported byspot_img

Latest News

Supported byspot_img
Supported bySEE Energy News

Related News

Republika Srpska to raise electricity prices from 2027 amid Ugljevik coal issues

Businesses in Republika Srpska are expected to see higher electricity prices starting in January 2027, with households facing increases from March. The authorities are also seeking to strengthen the power sector’s finances while addressing coal supply problems that could...

Tolanovo 168 MW wind project enters concession process in Bosnia and Herzegovina

Concession launched for 168 MW Tolanovo wind farm The Republic of Srpska has opened a public concession procedure for the proposed 168 MW Tolanovo wind farm, with an estimated project value of €102 million. The development is located near Nevesinje,...

Ugljevik plant to stop October 15 amid coal shortages and mounting financial liabilities

Bosnia and Herzegovina’s RiTE Ugljevik coal-fired power plant is expected to cease operations on October 15. The expected shutdown comes as worsening coal shortages coincide with mounting financial obligations. The change is likely to increase electricity imports and add...
Supported byVirtu Energy