Bosnia and Herzegovina’s Southern Gas Interconnection remains in the financing stage, with the selected developer working to secure financial support needed to advance the project into construction, according to Joseph Flynn. Flynn is head of US-based AAFS Infrastructure and Energy. The project is positioned as a major energy infrastructure development for the country.
The planned pipeline would provide access to natural gas supplies arriving via Croatia’s LNG terminal on Krk Island. By establishing an alternative import route, Bosnia and Herzegovina would reduce dependence on Russian gas. The project is also described as a measure intended to improve resilience in the country’s energy system.
AAFS assembling funding consortium for €1.5 billion project
Flynn said AAFS does not plan to finance the Southern Gas Interconnection alone. Instead, the company is working to assemble a consortium that includes banks, investment funds, and strategic partners. The estimated value of the project is around €1.5 billion.
Flynn indicated that broad financial participation is required for infrastructure of this scale. He referenced standard models used for large international energy developments as the basis for assembling the funding package.
Energy security focus and US political interest
According to Flynn, the primary advantage of the Southern Interconnection is not necessarily lower gas prices. He said the project’s additional supply route would allow Bosnia and Herzegovina to access gas from multiple sources. This is intended to reduce exposure to geopolitical disruptions and support a more stable investment environment.
Flynn also noted that the project has attracted interest and political support from the United States. He linked that support to energy diversification priorities in partner countries. He further said a more interconnected and flexible regional gas market would contribute to stability and long-term economic development.
Price outlook uncertainty amid diversification benefits
While increased competition among suppliers could place downward pressure on prices, Flynn cautioned that no developer can guarantee cheaper gas in the future. He said global market dynamics, geopolitical risks, and demand fluctuations remain highly uncertain.
In that context, Flynn argued that the project’s core value lies in supply diversification rather than price predictability. Despite ongoing efforts to secure financing, AAFS remains confident the Southern Gas Interconnection will be realized and become part of Bosnia and Herzegovina’s future energy infrastructure.
