
The Federation of Bosnia and Herzegovina (FBiH) has awarded US company AAFS Infrastructure and Energy a contract to build and operate the Southern Gas Interconnection pipeline with Croatia, after the entity’s lower house of parliament adopted amendments to the project law.
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The changes, adopted under a fast-track procedure, exclude state-owned BH-Gas from the project, in line with objections from the Croat side in Bosnia and Herzegovina.
The entity's energy minister Vedran Lakic said the project would diversify gas supply, as the country currently relies solely on Russian gas via TurkStream. He added that the issue of state property remains unresolved.
Lower house speaker Mladen Boskovic stressed the importance of the US investor, saying the project would enhance stability and security and strengthen ties with Croatia and the United States.
The pipeline would connect BiH to Croatia’s gas network and the LNG terminal on the northern Adriatic island of Krk. The law still requires approval by the upper house.
The project has strong backing from the current US administration, which is seeking swift decisions. US Energy Department envoy Joshua Volz conveyed that message in Sarajevo ahead of the parliamentary debate.
Following entity-level procedures, an interstate agreement is expected to be finalised and signed at the Three Seas Initiative summit in Dubrovnik later this month. US investors have also announced plans to build three gas-fired power plants alongside the pipeline.
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