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Bosnia: New gas trader company in the market, Italian connection

New company shall be established by the group of businessmen from Bosnia and Herzegovina in cooperation with partners from Italy. The only obstacle for this company to become operational is the Government Decree on Organization and Regulation of Gas Industry Sector.

Federation of Bosnia and Herzegovina could get the new company for gas import in addition to existing BH-Gas, according to Patria.

The price of the gas that this company would offer on the market should be a bit lower than the price of gas of BH-Gas. If this happens, BH-Gas shall face serious issues.

According to that Decree, gas import to Federation of Bosnia and Herzegovina can be performed only by Energoinvest d.d. Sarajevo and BH-Gas d.o.o. Sarajevo.

The source of Patria news agency claims that some of the highest ranked politicians in the Government of Federation of Bosnia and Herzegovina are involved in solving this last obstacle. The proposal for the amendment to this Decree shall soon be brought before the Government and the Parliament of Federation of Bosnia and Herzegovina.

– New Decree should allow other companies, apart from BH-Gas and Energoinvest to import gas to Federation of Bosnia and Herzegovina – revealed this source.

Bosnia and Herzegovina procures gas from Russia. Transport is going through Ukraine, then Hungary and enters Bosnia and Herzegovina through Serbia. BH-Gas takes over gas in Kladanj. High transportation price paid to Hungarians puts pressure on BH-Gas. The problem is the contract which BH-Gas concluded with Hungarians in 1999, through Energoinvest. Namely, from 1999 to 2019 BH-Gas rented huge capacities through Hungary, even half of it is unused, but it has to be fully paid.

Due to this contract on transportation through Hungary the price of gas at BH-Gas is somewhat higher than realistic. Former management of BH-Gas succeeded to reduce the gas price by a bit more than 30 percent, but still the gas is five to ten percent more expensive than the price that could be achieved now.

Mysterious company sees its chance precisely in those five to ten percent, which is how much cheaper it can obtain gas price with the new contract on transportation with Hungarians.

-This new company could just rent smaller transportation capacities through Hungary and do not pay penalties. It can offer more favorable prices than BH-Gas only on that basis – explained this source.

Jasmin Salkić, Director of BH Gas said in his statement to Patria that the gas in Federation of Bosnia and Herzegovina cannot be imported by anyone else except BH-Gas and Energoinvest. Every attempt to import gas in Federation of Bosnia and Herzegovina would be a speculation. That is how it is defined in the Government Decree on organization and regulation of gas industry sector.

Salkić claims that BH-gas is also turning to new business operations and new projects that shall additionally strengthen this company on the market, transmits Serbia-energy.eu

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