EU-backed pipeline links Bosnia and Herzegovina with Croatia’s gas system
A report by the Bloomsbury Intelligence and Security Institute (BISI) says the planned Southern Gas Interconnection between Bosnia and Herzegovina and Croatia could have political implications alongside its energy role. The project is supported by the European Union and is designed to connect Bosnia and Herzegovina to Croatia’s gas network and the LNG terminal on Krk Island. The infrastructure comprises a 162 km pipeline in Bosnia and Herzegovina and an additional 74 km in Croatia.
BISI also links the project to efforts to reduce dependence on Russian gas imports. The report states that, while the pipeline would diversify supply routes, it would not reduce overall dependence on natural gas as a fuel source. Instead, it would shift import dependency toward alternative suppliers.
Implementation risks tied to internal disputes and future energy policy
The analysis says internal political disputes within Bosnia and Herzegovina could complicate implementation. It adds that such disputes may influence future energy policy decisions. BISI frames these issues as factors that could affect how the interconnection develops over time.
The report further highlights that the interconnection’s governance environment may vary across institutions within Bosnia and Herzegovina. It points to differing positions that could shape project execution and related policy choices.
March 2026 contract award draws scrutiny over procurement process
The procurement section of the report raises concerns about how the construction contract was awarded. It states that the contract was granted in March 2026 to the US-based company AAFS Infrastructure and Energy. BISI claims the firm has limited experience in large-scale infrastructure projects.
BISI also says the selection process faced criticism from some European institutions and anti-corruption groups. The report presents this scrutiny as part of broader concerns around procurement transparency for the interconnection.
Republika Srpska reservations versus Federation support
The report highlights political divisions within Bosnia and Herzegovina regarding the project. It states that authorities in the Republika Srpska (RS) expressed reservations about increasing US involvement in strategic infrastructure. Support for the interconnection appears stronger in the Federation of Bosnia and Herzegovina (FBiH), according to BISI.
BISI concludes that unresolved disagreements over governance, procurement transparency, and political alignment could create challenges for financing and long-term implementation of the project.
