US firm AAFS and the Federation of Bosnia and Herzegovina are wrapping up final preparations to sign a deal on the Southern Interconnection natural gas pipeline project.
Vedran Lakić, Minister of Energy, Mining and Industry of the Federation of BiH, has met with Jesse Binnall, Vice President at AAFS Infrastructure and Energy LLC, to discuss the next steps.
Following the talks, the ministry stated that energy security is non-negotiable, stressing that Bosnia and Herzegovina and the Federation of BiH, one of the country’s two entities, can no longer depend on a single gas route and supplier.
Lakić: the Southern Interconnection is about security, not just energy
Currently, Bosnia and Herzegovina – both the Federation of BiH and the Republic of Srpska – gets its natural gas from Russia via Serbia.
The discussions focused on finalizing remaining tasks to seal the agreement between the FBiH and AAFS, which would establish a framework for building the pipeline.
“The Southern Interconnection is both an energy and a security project. The contract must protect FBiH interests while securing a reliable gas supply from an alternative source at more competitive rates for households and industry,” Lakić stressed.
Binnall: Moving forward on a key project
Binnall noted that work continues on this vital project to bring stable, competitive energy from diversified sources to BiH citizens.
He added that the company is fully focused on finalizing the deal and initiating a long-term, 50-year commitment to the people of BiH.
Of note, earlier reports indicated that AAFS would receive a 30-year concession to manage the pipeline within BiH territory.
US stepping in for Russia
The Southern Interconnection aims to offer BiH, primarily the Federation of BiH, a new supply route. Deliveries would flow from Croatia via the LNG terminal on the island of Krk, where US gas imports could also arrive.
In recent years, the FBiH and the wider Southeast European region have been working to move away from legacy supplier Russia and arrange supply deals with the US.
In late April, BiH and Croatia signed an intergovernmental agreement to construct the Southern Interconnection gas pipeline.
