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Bosnia and Herzegovina: Uncertainty surrounds Southern Gas Interconnection project

The leader of the ruling Croatian party in Bosnia and Herzegovina, HDZ, Dragan Čović, claims that the gas interconnection law passed last month by the House of Peoples of the Federation of Bosnia and Herzegovina (FBiH), which is intended to deliver US LNG to Croatia, has no chance of being implemented.

This statement raises further doubts about the future of the project, which is backed by the Biden administration and Bosniak representatives. Although Čović had initially supported the project, he emphasized that it should be managed by a newly established public gas company, rather than the current BH Gas.

Despite opposition from HDZ representatives, the law on the Southern Gas Interconnection was passed in mid-December last year. Additionally, parliamentary conclusions called for changes in the governance and oversight structures of BH Gas, as well as amendments to its statute. However, with the collapse of the ruling coalition at the state level, the future of the project remains uncertain.

The Southern Gas Interconnection project, valued at 100 million euros, is designed to reduce Bosnia and Herzegovina’s reliance on Russian gas and strengthen its energy sector. It aims to connect Bosnia and Herzegovina to Croatia, and through Croatia, to the European Union. The pipeline would start in Zagvozd, Croatia, and pass through several Bosnian towns, including Posušje, Tomislavgrad, Šuica, Kupres, Bugojno, Novi Travnik, and Travnik, with a branch extending to Mostar.

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