A major step toward reshaping the energy landscape in the Federation of Bosnia and Herzegovina (FBiH) has been taken after lawmakers approved amendments to legislation governing the Southern Gas Interconnection project. The decision, adopted at an extraordinary session of the House of Peoples of the FBiH Parliament, effectively removes key legal barriers and allows the project to move forward.
With strong parliamentary support, the revised law now awaits formal publication before entering into force. The next important milestone will be the finalization of an intergovernmental agreement between Bosnia and Herzegovina and Croatia, which is expected to be signed in the near future.
The urgency behind these legislative changes is closely linked to evolving European Union energy policy, as the EU plans to phase out Russian gas supplies by early 2028. This has increased pressure on regional governments to secure alternative energy routes, with the Southern Gas Interconnection seen as a key safeguard against potential supply disruptions.
A central element of the updated framework is the designation of the project developer. The role has been assigned to AAFS Infrastructure and Energy Sarajevo, a company fully owned by US-based AAFS Infrastructure and Energy, which has already expressed readiness to begin financing and implementation without delay.
The revised plan also includes an expanded pipeline route aimed at accelerating gasification in industrial regions. New corridors will pass through several municipalities in central and western FBiH, while an additional branch toward Tuzla is expected to strengthen supply for major industrial users and the local thermal power plant.
Since the same legislative package had already been approved by the lower chamber, the adoption by the upper house effectively completes the parliamentary process. Attention now shifts to concluding agreements with Croatia and the selected investor, paving the way for the construction phase to begin in the near future.
