# South Interconnection gas pipeline development > Live situation record from CLSTR: https://clstr.news/situations/south-interconnection-gas-pipeline-development > Updated: 2026-08-31T00:00:00.000Z. Sources: 4. Developments: 2. The South Interconnection gas pipeline project, intended to link the gas systems of Bosnia and Herzegovina and Croatia to the Krk LNG terminal, has transitioned from a critical implementation phase to a period of delay. Initially, officials from the Federation of Bosnia and Herzegovina and the American firm AAFS Infrastructure and Energy LLC met to finalize contract details. The project was framed as a strategic security measure to reduce reliance on Russian gas. AAFS expressed a desire for a long-term commitment, potentially spanning 50 years. However, construction has since stalled following the expiration of a contract deadline in June. Delays are attributed to unresolved issues, including the lack of ratification of the international agreement between Bosnia and Herzegovina and Croatia. Additionally, experts suggest financing disputes may be a factor, specifically regarding whether the Federation Government must act as a guarantor for future gas consumption to secure credit. Political opposition has also raised concerns regarding the terms of the agreement. ## Timeline ### 2026-08-31: South Interconnection gas pipeline project faces delays The South Interconnection gas pipeline project between Bosnia and Herzegovina and Croatia is stalled due to unsigned contracts and unresolved financing disputes involving the US firm AAFS Infrastructure & & 4 sources. https://clstr.news/cluster/south-interconnection-gas-pipeline-project-faces-delays ### 2026-08-12: South Interconnection gas project enters key phase with US partner The South Interconnection gas pipeline project moves toward a contract between Bosnia and Herzegovina and US-based AAFS Infrastructure and Energy to enhance regional energy security and LNG access. 7 sources. https://clstr.news/cluster/south-interconnection-gas-project-enters-key-phase-with-us-partner --- Cite as: South Interconnection gas pipeline development. CLSTR, https://clstr.news/situations/south-interconnection-gas-pipeline-development