The Government of the Federation of Bosnia and Herzegovina (FBiH) has proposed a revised implementation model for the long-planned Southern Gas Interconnection, aiming to accelerate progress on one of the country’s most important energy infrastructure projects. Under the new proposal, US-based AAFS Infrastructure and Energy would be responsible for the construction and operation of the pipeline.
The project is designed to connect Bosnia and Herzegovina with Croatia’s gas transmission network, thereby enabling indirect access to the LNG terminal on Krk island and expanding the country’s supply options. The proposed amendments to the law governing the project have been submitted to parliament under an urgent procedure, with the goal of removing administrative and institutional delays that have slowed development.
One of the key elements of the proposal is the introduction of a long-term concession framework, under which AAFS would manage the pipeline. This marks a significant shift in the project structure and reflects an effort to bring in an experienced international operator to ensure faster execution.
The Southern Gas Interconnection is widely regarded as a strategically critical project, as it would reduce Bosnia and Herzegovina’s dependence on Russian gas by diversifying supply routes. By linking the Federation to Croatia’s gas system, the project would provide access to alternative sources of imported gas and strengthen overall energy security.
A major change in the amended proposal is the removal of state-owned company BH-Gas as the designated project developer. BH-Gas, which is owned by the Federation, had previously been assigned responsibility for the project. Its exclusion follows long-standing political demands, particularly from HDZ BiH, which advocated for a different institutional setup.
Instead of creating a new entity based in Mostar, as previously proposed, the revised plan envisions a Sarajevo-based branch of AAFS taking on the operational role. This solution represents a political compromise aimed at resolving disputes that have surrounded the project for months.
Federal Minister of Energy, Mining and Industry Vedran Lakić stated that the changes are intended to accelerate implementation rather than reopen political debates. He emphasized that the project should be viewed primarily as a matter of energy security for both households and businesses.
The proposed amendments must still be approved by both chambers of the Federation Parliament. If adopted, they would establish the legal and institutional framework needed to move the Southern Gas Interconnection into a more advanced implementation phase.
