A report by the Bloomsbury Intelligence and Security Institute (BISI) argues that the planned Southern Gas Interconnection between Bosnia and Herzegovina and Croatia could carry not only energy but also significant political implications.
The project, supported by the European Union, aims to connect Bosnia and Herzegovina to Croatia’s gas network and the LNG terminal on Krk Island, with the broader goal of reducing dependence on Russian gas imports. The planned infrastructure includes a 162 km pipeline in Bosnia and Herzegovina and an additional 74 km in Croatia.
According to the report, internal political disputes within Bosnia and Herzegovina could complicate implementation and shape future energy policy decisions. While the pipeline would diversify supply routes, BISI notes that it would not reduce overall dependence on natural gas as a fuel source, but rather shift import dependency toward alternative suppliers.
The analysis also raises concerns regarding the procurement process, stating that the construction contract was awarded in March 2026 to the US-based company AAFS Infrastructure and Energy. BISI claims the firm has limited experience in large-scale infrastructure projects, and that the selection process has faced criticism from some European institutions and anti-corruption groups.
Political divisions within Bosnia and Herzegovina are also highlighted. Authorities in the Republika Srpska (RS) have expressed reservations about increasing US involvement in strategic infrastructure, while support for the project appears stronger in the Federation of Bosnia and Herzegovina (FBiH).
BISI concludes that unresolved disagreements over governance, procurement transparency, and political alignment could create challenges for both financing and the long-term implementation of the project.
