Bosnia and Herzegovina’s planned Southern Interconnection with Croatia faces route, governance and financing obstacles that make completion before 2030 unlikely, a former BH-Gas director said. The Southern Interconnection is intended to give the country access to the Krk LNG terminal and diversify supply away from Russian gas.
The route must be reconsidered because it crosses disputed state property, while disagreements also affect the project’s implementation structure. Developed originally with EU support around BH-Gas, the project entered a new development phase when US-based AAFS Infrastructure and Energy took over in 2026. Its estimated investment requirement is about €1.5 billion.
AAFS intends to bring in financing partners, and a new feasibility study is expected to cost around $10 million. Construction had previously been discussed for 2027, but the former BH-Gas director said completion before 2030 now looks unlikely.
Until a new gas corridor is available, Bosnia and Herzegovina remains dependent on Russian gas transported through TurkStream via Bulgaria and Serbia. The European Bank for Reconstruction and Development announced €9 million through UniCredit Bank Banja Luka for small and medium-sized enterprises’ energy efficiency, renewable technologies and greener residential buildings. The financing includes EU-backed cashback incentives.
Distributed efficiency investment can use existing financial channels, while large cross-border infrastructure faces property, political and project-structure bottlenecks. Across southeastern Europe, decarbonisation is advancing fastest where projects can use standardised bank finance, while large strategic infrastructure remains vulnerable to governance obstacles.
