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Southern Gas Interconnection investor deal nears finalisation in Bosnia and Herzegovina

Preparations for an investor agreement covering Bosnia and Herzegovina’s Southern Gas Interconnection are entering their final phase, Federal Minister of Energy, Mining and Industry Vedran Lakić said. The minister linked the timeline to progress on remaining preparatory steps for the long-planned pipeline project.

Legislative updates expand the pipeline scope

Lakić described the Southern Gas Interconnection as a strategic investment for the Federation of Bosnia and Herzegovina (FBiH). He said there is no realistic alternative to developing the project. He also stated that legislative amendments have broadened the scope by adding several new sections, including the Kladanj–Tuzla pipeline route.

Conditions for signing and starting construction

The minister said the agreement with the selected investor is expected to be signed after remaining preparatory steps are completed. Before construction can begin, authorities must resolve outstanding state property issues. They also need to finalise an updated feasibility study reflecting the revised project design. Lakić added that the main agreement would be concluded first, with any remaining technical or administrative matters handled later through additional contract annexes.

Gas-fired power plants and EU import phase-out timeline

Lakić highlighted three planned gas-fired power plants as part of the project’s demand outlook. He said they are expected to generate sufficient gas demand to support long-term economic viability. He also stated that higher consumption levels should improve the pipeline’s commercial feasibility and help enable more competitive gas prices for both households and industry.

On European Union plans to phase out Russian natural gas imports from 1 January 2028, Lakić said the measures relate to the origin of gas rather than the infrastructure used for its transportation.

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