The House of Representatives of the Federation of Bosnia and Herzegovina (FBiH) Parliament has approved the draft law for the Southern Gas Interconnection, a significant step towards reducing Bosnia and Herzegovina’s reliance on Russian gas. The new law, which aims to connect the country to the Croatian gas transmission system, received majority support in the Parliament.
The Croatian Democratic Union of BiH (HDZ BiH) had long pushed for the headquarters of the managing company of the pipeline to be located in Mostar, rather than Sarajevo. HDZ BiH argued that locating the headquarters in Sarajevo could allow the capital to exert control over areas with a Croatian majority. However, this proposal was rejected, and instead, a resolution was passed calling for the restructuring of BH Gas, the company responsible for managing the pipeline.
The restructuring process will require changes to BH Gas’s management and supervisory structures, as well as the establishment of potential field offices through amendments to its statutes and other relevant documents. BH Gas will also undergo a review of its operations, guided by recommendations from the Federation of BiH Audit Office.
A compromise solution was reached, placing BH Gas’s headquarters in Sarajevo, as urged by the US administration. The company is also expected to diversify its management by hiring individuals from various ethnic backgrounds, not just Bosniaks.
The passage of the law follows considerable international pressure, with the outgoing US Ambassador and the Biden administration strongly advocating for the law’s approval. Just weeks before the vote, Ambassador Michael Murphy addressed the Parliament via video, urging lawmakers to pass the law. He emphasized the strategic importance of the gas pipeline in reducing BiH’s dependence on Russian energy sources and aligning the country with broader European energy security goals. His appeal, particularly directed at Bosniak representatives, helped push the law over the finish line.
This law is considered critical for Bosnia and Herzegovina’s energy future, as the Southern Gas Interconnection will bring natural gas to areas that have previously been off the gas network. The project is seen as a vital step in ensuring energy diversification and stability in the region, shifting the geopolitical landscape in favor of more secure and sustainable energy sources.
