MoU on gas interconnection between Bosnian and Croatian companies

, SEE Energy News

In order to intensify works on gas interconnection between the two countries, Croatian natural gas transmission system operator Plinacro and Bosnian gas company BH-Gas have signed a Memorandum of Understanding (MoU).

The MoU represents the continuation of lengthy cooperation between the two companies and aims to intensify activities on preparation and realization of projects related to gas interconnection between Croatia and Bosnia and Herzegovina at three connection points: southern interconnection (Zagvozd-Imotski-Posusje-Novi Travnik with branch to Mostar), northern interconnection (Slobodnica-Brod-Zenica) and western connection (Licka Jesenica-Rakovica-Trzac -Bosanska Krupa with branches to Bihac and Velika Kladusa).

The implementation of these projects ensures the diversification of routes and sources of natural gas supply for Bosnia and Herzegovina through the liquefied natural gas (LNG) terminal on the island of Krk and the future Ionian-Adriatic gas pipeline, thus increasing natural gas transit through Croatia.

In February, BH-Gas, the European Bank for Reconstruction and Development (EBRD) and the US Agency for International Development (USAID) have signed a grant agreement for the construction of gas interconnection between BiH and Croatia. BH-Gas said that the agreement would activate funds earmarked for environmental impact and feasibility studies for the interconnection project. At the same time, BH-Gas said signed a contract with a consortium led by Croatian consultancy firm Dvokut-Ecro for the preparation of a feasibility study and an environment impact study for the project. The cost of the feasibility study is 500,000 dollars, which will be financed by a USAID grant of the same amount, while the EBRD will manage how the USAID grant is being spent.