The proposed Southern Gas Interconnection between Croatia and Bosnia and Herzegovina is moving through diplomatic and political approval procedures while discussions continue over potential US participation in the project. The interconnector is designed to create an additional route for gas imports into Bosnia and Herzegovina via Croatia.
AAFS engagement with the Federation of Bosnia and Herzegovina
AAFS Infrastructure and Energy, based in the US, is seeking to deepen discussions with the Federation of Bosnia and Herzegovina on the proposed pipeline. The company’s interest was reiterated by AAFS Vice President Jesse Binnall after a meeting with Vedran Lakić, Minister of Energy, Mining and Industry of the Federation.
Binnall said AAFS is prepared to maintain a long-term presence in Bosnia and Herzegovina, referring to a period of up to 50 years. It remains unclear whether that figure relates to a potential concession, as earlier discussions had envisaged a 30-year pipeline concession.
Interconnector design and supply linkages
The planned interconnector would connect the gas transmission networks of Bosnia and Herzegovina and Croatia. That connection would provide Bosnia and Herzegovina access to supplies entering the Croatian system. The source supplies include liquefied natural gas delivered through the Krk LNG terminal.
Supporters of the project cite diversification of gas supplies and reducing Bosnia and Herzegovina’s dependence on Russian gas. For the Federation, Lakić said any agreement with AAFS would need to protect Federation interests and ensure reliable gas supplies at competitive prices.
Legal steps for development and remaining approvals
The legal framework for the pipeline has already advanced. Croatia and Bosnia and Herzegovina signed the interstate agreement on 28 April, setting out the basis for developing the Southern Gas Interconnection.
Bosnia and Herzegovina’s Council of Ministers launched the ratification process in late July. The agreement still requires approval from the country’s Presidency and both chambers of Parliament.
Commercial structure considerations for both countries
The project remains dependent on political and institutional steps before construction can proceed. If necessary approvals are obtained, it could strengthen Bosnia and Herzegovina’s gas security, provide access to diversified supplies through Croatia, and integrate the country into the wider Southeast European gas market.
For Croatia, the project would reinforce the strategic role of its Krk LNG terminal and gas transmission network as regional entry points for non-Russian gas. Its eventual impact would depend on political approval as well as final investment structure, concession terms, financing, and securing competitive and reliable gas supplies for the Bosnian market.
