The Government of the Federation of Bosnia and Herzegovina (FBiH) has unveiled a revised implementation model for the Southern Gas Interconnection, a crucial energy infrastructure initiative aimed at enhancing the country’s gas supply capabilities. Under the new framework, US-based AAFS Infrastructure and Energy is set to assume responsibility for both the construction and operation of the pipeline.
This project is pivotal as it aims to link Bosnia and Herzegovina with Croatia’s gas transmission network, facilitating indirect access to the Liquefied Natural Gas (LNG) terminal on Krk Island. The proposed legal amendments have been submitted to parliament under an urgent procedure, designed to eliminate administrative hurdles that have previously hindered progress.
A significant aspect of this proposal is the establishment of a long-term concession framework, which would enable AAFS to manage the pipeline operations. This change indicates a strategic shift in project management, reflecting a move towards involving experienced international operators to expedite development timelines.
The Southern Gas Interconnection is recognized as a strategically critical project for Bosnia and Herzegovina, aiming to diminish reliance on Russian gas by diversifying supply routes. By connecting with Croatia’s gas system, this initiative promises access to alternative sources of imported gas, thereby enhancing national energy security.
<pA notable alteration in the proposal is the exclusion of BH-Gas, a state-owned company previously designated as the project developer. This decision follows longstanding political advocacy from HDZ BiH for a different institutional arrangement regarding project oversight.
Rather than establishing a new operational entity in Mostar as initially suggested, the updated plan proposes that AAFS will operate from a Sarajevo-based branch. This adjustment represents a political compromise, aiming to resolve ongoing disputes that have plagued project discussions in recent months.
Federal Minister of Energy, Mining and Industry Vedran Lakić has articulated that these changes are focused on accelerating implementation without reigniting political debates. He underscored the importance of this initiative as primarily related to energy security for households and businesses alike.
The proposed amendments now await approval from both chambers of the Federation Parliament. If sanctioned, these changes will establish the necessary legal and institutional framework to advance the Southern Gas Interconnection into its next implementation phase.
