American investors visited Sarajevo to discuss the Southern Gas Interconnector project, aimed at linking Bosnia and Herzegovina with the Croatian gas system and the LNG terminal on the Croatian island of Krk.
The visit included Joseph Flynn and Jesse Binnall, President and Vice President of AAFS Infrastructure and Energy LLC, and John Ginkel, Chargé d’Affaires at the US Embassy in Sarajevo, who met with local officials to explore the role of American capital and resources in the project.
According to the US Embassy, “This is a project that will enable the supply of reliable American liquefied natural gas to Bosnia, strengthening energy security for all citizens.”
The meetings also involved Bosnia’s Minister of Foreign Affairs, Elmedin Konaković, and focused on advancing projects of strategic importance for energy security, regional connectivity, and long-term economic development. The parties confirmed joint commitment to deepen cooperation, encourage investments, and accelerate infrastructure projects.
About the Southern Gas Interconnector
- The pipeline will start in Travnik (central Bosnia), pass through Tomislavgrad and Posušje, cross the border near Imotski, and connect to the Croatian gas network near Makarska, continuing toward Split.
- A branch to Mostar is also planned.
- The Bosnian section will span roughly 170 kilometers, with construction costs estimated between €405 million and €810 million.
- The project will follow a concession model, with a US private investor financing, building, and operating the pipeline for a set period, after which it will be transferred to Bosnia.
- For the project to proceed, the Bosnian Federation must grant the concession and adjust the law designating BH-Gas as the project owner, and Bosnia and Croatia must sign an international implementation agreement.
The documentation is expected to be completed by autumn 2026, after which construction could begin.
Current Gas Supply Situation in Bosnia
Bosnia currently relies on Russian gas supplied via the Turkish Stream through Serbia, through a 40-year-old pipeline from Zvornik to Sarajevo.
- In 2024, Bosnia imported approximately 225 million cubic meters of gas, with Republika Srpska consuming around 30 million cubic meters and the Federation of Bosnia consuming the remainder.
- Bulgaria has announced a potential halt to Russian gas transit in 2028, which could leave Bosnia without alternative gas supplies, affecting both industry and households in Sarajevo.
The Southern Gas Interconnector aims to diversify Bosnia’s energy sources, improve security, and reduce reliance on Russian gas.
