The company selected to develop Bosnia and Herzegovina’s Southern Gas Interconnection project is still working to secure the financial support required to move the project into the construction phase, according to Joseph Flynn, head of US-based AAFS Infrastructure and Energy.
The planned pipeline is considered one of the country’s most important energy infrastructure developments, as it would enable access to natural gas supplies arriving via Croatia’s LNG terminal on Krk Island. By creating an alternative import route, Bosnia and Herzegovina would reduce its dependence on Russian gas and improve the resilience of its energy system.
Flynn explained that AAFS does not intend to finance the project alone. Instead, the company is focused on assembling a consortium of banks, investment funds, and strategic partners capable of supporting infrastructure of this scale. With an estimated value of around €1.5 billion, the project requires broad financial participation, consistent with standard models used for large international energy developments.
According to Flynn, the main benefit of the Southern Interconnection is not necessarily lower gas prices, but improved energy security. The additional supply route would allow Bosnia and Herzegovina to access gas from multiple sources, reducing exposure to geopolitical disruptions and creating a more stable investment environment.
He also noted that the project has received interest and political support from the United States, as energy diversification in partner countries is seen as a strategic priority. A more interconnected and flexible regional gas market, he argued, would contribute to both stability and long-term economic development.
While greater competition among suppliers could put some downward pressure on prices, Flynn cautioned that no developer can guarantee cheaper gas in the future. Global market dynamics, geopolitical risks, and demand fluctuations remain highly uncertain, meaning the project’s core value lies in supply diversification rather than price predictability.
Despite ongoing efforts to secure financing, AAFS remains confident that the Southern Gas Interconnection will eventually be realized and will become a key element of Bosnia and Herzegovina’s future energy infrastructure.
