The House of Peoples of the Federation of Bosnia and Herzegovina (FBiH) has adopted the Southern Gas Interconnection law in an expedited process, despite objections from Croatian representatives. The law, proposed by the Bosniak caucus, aims to establish a gas connection between Croatia and Bosnia and Herzegovina (BiH). It was approved by the House of Peoples in the same form as it was previously supported by the House of Representatives on December 12.
This decision paves the way for BiH to begin negotiations with Croatia and develop an intergovernmental agreement for a gas pipeline connecting the two countries. The proposed route would extend from Zagvozd to Posusje, with branches leading to Mostar and Novi Travnik. These branches will link to the existing gas network running from Serbia through eastern Bosnia to Sarajevo and Zenica. Once completed, the pipeline will allow BiH to access gas through the LNG terminal on Krk, reducing its dependence on Russia, which is currently its only gas supplier.
The law’s adoption came after strong support from the U.S. Embassy in BiH, which issued a statement urging delegates in the House of Peoples to decide whether to align with the Euro-Atlantic community or Russia. The law designates BH Gas, a Sarajevo-based company, as the project leader, a decision that has faced opposition from Croatia, particularly from the HDZ BiH party. They have called for the creation of a new company headquartered in Mostar to oversee the project.
Vedran Lakic, the Federal Minister of Energy, Mining, and Industry, emphasized that the Federation does not require two gas system operators due to its relatively small size. He argued that BH Gas has the necessary expertise and has already repaid part of its debts and resolved outstanding loan obligations. Lakic announced plans to reorganize BH Gas, including establishing a branch office in Herzegovina with an executive director and a dedicated team for the Southern Interconnection project. He also mentioned plans to build additional interconnections to create a gas ring, with Croatia and its gas transmission system operator, Plinacro, as key partners in this initiative.
