BiH, Croatia sign agreement on Southern Gas Interconnection

Bosnia and Herzegovina and Croatia have signed an intergovernmental agreement on the construction of their Southern Gas Interconnection, with the aim of ensuring a secure and stable energy supply.

The Southern Gas Interconnection would provide Bosnia and Herzegovina with an alternative supply via Croatia. The country currently relies on Russian gas, coming via Turkey, Bulgaria and Serbia.

The intergovernmental agreement was signed in Dubrovnik, as part of the Three Seas Initiative summit, by Chairwoman of the Council of Ministers of BiH Borjana Krišto and Prime Minister of Croatia Andrej Plenković.

The pipeline would ensure diversification of routes and sources of natural gas

The routes are Split – Zagvozd (in Croatia) – Posušje (in BiH) – Tomislavgrad – Šuica – Kupres – Bugojno – Novi Travnik / Travnik, and Posušje – Grude – Široki Brijeg – Mostar route, branching out through Livno, Gornji Vakuf – Uskoplje, Donji Vakuf and Jajce, to Čapljina and with another part to Kladanj and Tuzla.

This will ensure the diversification of routes and sources of natural gas, enabling the energy independence of BiH, according to the the Council of Ministers of BiH.

The new pipeline would receive the fuel from the liquefied natural gas (LNG) terminal in Krk, Croatia.

The ceremony was attended by US Energy Secretary Chris Wright and Vedran Lakić, Minister of Energy, Mining and Industry of the Federation of BiH.

US-based firm AAFS Infrastructure and Energy is set to manage the gas pipeline through BiH.

The project was planned for many years, but until a few months ago, there was little progress. In January, BiH authorities said AAFS Infrastructure and Energy wass to be granted a 30-year concession.

In late February, twelve countries of Central and Eastern Europe and the Balkans, including BiH, reached an agreement with the US on a partnership for the supply of LNG.

The Federation of BiH, the BiH entity through which the pipeline will pass, recently adopted a lex specialis on the project, naming the US firm as the investor. The European Union objected to this solution, saying BiH could face consequences.

Krišto: BiH is at the crossroads of Southeastern Europe’s energy flows

According to Borjana Krišto, Chairwoman of the Council of Ministers of BiH, the country is at the crossroads of energy flows in Southeast Europe. Apart from being a consumer, it has the potential to be an active participant in building a safer and more resilient energy infrastructure, in her view.

This transatlantic cooperation and initiative represent an opportunity to accelerate energy investments and connect markets, Krišto stressed.

Croatia, as the host of the meeting in Dubrovnik, invited BiH as a guest.

Plenković: It is confirmation that Croatia represents a regional energy hub

The agreement confirms Croatia’s position as a regional energy hub and the possibility of transporting gas, via an appropriate pipeline, from the Krk LNG terminal to BiH, Prime Minister Andrej Plenković underscored.

He stressed that the significance of the vertical connection between Northern and Southern Europe lies in the fact that the Three Seas Initiative includes 13 EU member states from Central and Eastern Europe.

The aim is to connect the Baltic, Black and Adriatic seas and improve infrastructure, transport and energy connectivity, Plenković pointed out.