Authorities in Bosnia and Herzegovina (BiH) have taken an important step toward developing a new cross-border gas connection with Croatia, advancing a draft agreement that opens the way for formal negotiations between the two countries.
The proposal, approved at an extraordinary Government session, outlines the construction of the Southern Gas Interconnection pipeline, which would link the Croatian gas network near Zagvozd with the Bosnian system at Posušje. This document will form the basis for upcoming talks between official delegations responsible for finalizing the interstate agreement.
A key component of the project is the involvement of AAFS Infrastructure and Energy, a privately owned US company designated as the main investor under recently updated legislation. The company is expected to finance the pipeline segment within BiH and operate it under a long-term concession, likely extending for at least 30 years.
Beyond infrastructure development, the project holds strong strategic significance for the country’s energy security. By connecting to Croatia’s system, Bosnia and Herzegovina would gain access to liquefied natural gas (LNG) delivered via the Krk terminal, reducing its dependence on Russian gas imports.
The planned network would extend well beyond the border connection, branching into several regions. One route is expected to pass through central areas such as Tomislavgrad, Kupres, and Travnik, while another would supply western and southern cities including Široki Brijeg and Mostar, with further extensions planned toward Tuzla and other industrial hubs.
A negotiation team consisting of ministers from both state and entity levels has been appointed to lead the process. The draft agreement will now be forwarded to the Presidency of Bosnia and Herzegovina for the next phase of approval.
If all procedures are completed on time, the agreement could be formally signed during the upcoming Three Seas Initiative Summit, scheduled to be held in Dubrovnik later this month.
