South Interconnection gas project enters key phase with US partner

The South Interconnection gas pipeline project has entered a critical phase as officials from the Federation of Bosnia and Herzegovina and the American company AAFS Infrastructure and Energy LLC work to finalize implementation details. Federal Minister of Energy, Mining, and Industry Vedran Lakić met with AAFS Vice President Jesse Binnall to discuss concluding remaining activities and preparing the contract between the Federation and AAFS.

The project aims to connect the gas systems of Bosnia and Herzegovina and Croatia, providing access to the LNG terminal on Krk. This connection is viewed as a strategic security measure to reduce Bosnia and Herzegovina’s dependence on single supply routes, specifically Russian gas, by enabling access to alternative energy sources.

AAFS has expressed a desire to quickly finalize the agreement, describing it as a 50-year commitment to the citizens of Bosnia and Herzegovina. While previous discussions mentioned a 30-year concession, the company is now emphasizing a long-term engagement. Minister Lakić emphasized that the contract must protect the Federation’s interests and ensure stable, competitively priced gas supplies. Further steps include the ratification of the agreement between Bosnia and Herzegovina and Croatia and resolving issues regarding the use of state property along the pipeline route.