The proposed Southern Gas Interconnection between Croatia and Bosnia and Herzegovina is advancing through diplomatic and political approval procedures as discussions continue over potential US participation in the project.
US-based AAFS Infrastructure and Energy is seeking to deepen discussions with the Federation of Bosnia and Herzegovina on the proposed pipeline, which would establish an additional route for gas imports into the country through Croatia.
AAFS Vice President Jesse Binnall reiterated the company’s interest following a meeting with Vedran Lakić, Minister of Energy, Mining and Industry of the Federation of Bosnia and Herzegovina. Binnall said the company was prepared to maintain a long-term presence in Bosnia and Herzegovina, referring to a potential period of up to 50 years. It remains unclear whether the timeframe relates to a potential concession, as previous discussions had envisaged a 30-year pipeline concession.
The planned interconnector would connect the gas transmission networks of Bosnia and Herzegovina and Croatia, giving the country access to supplies entering the Croatian system, including liquefied natural gas delivered through the Krk LNG terminal. Supporters see the project as an important step toward diversifying gas supplies and reducing Bosnia and Herzegovina’s dependence on Russian gas.
For the Federation, however, the commercial and strategic conditions remain critical. Lakić said any agreement with AAFS would have to protect the interests of the Federation and ensure reliable gas supplies at competitive prices. This suggests that the future structure of the project, including its concession arrangements and commercial terms, will remain an important part of negotiations.
The legal framework for the pipeline has already moved forward. Croatia and Bosnia and Herzegovina signed the interstate agreement on 28 April, establishing the basis for development of the Southern Gas Interconnection. Bosnia and Herzegovina’s Council of Ministers launched the ratification process in late July, but the agreement still requires approval from the country’s Presidency and both chambers of Parliament.
The project therefore remains dependent on several political and institutional steps before construction can move ahead. If the necessary approvals are secured, the Southern Gas Interconnection could strengthen Bosnia and Herzegovina’s gas security, provide access to diversified supplies through Croatia and further integrate the country into the wider Southeast European gas market.
For Croatia, the project would also reinforce the strategic role of its Krk LNG terminal and gas transmission network as regional entry points for non-Russian gas. Its eventual impact will depend not only on political approval, but also on the final investment structure, concession terms, financing and the ability to secure competitive and reliable gas supplies for the Bosnian market.
