Bosnia’s Presidency approves Southern Interconnection gas pipeline agreement

The project outlines the development of a strategic pipeline stretching from Zagvozd in Croatia through Posušje in Bosnia and Herzegovina, extending to Novi Travnik/Travnik with a critical branch diverted toward Mostar. Under the terms of the agreement, both nations will cooperate on the joint construction while maintaining responsibility for the infrastructure within their respective territories.

The comprehensive route is set to encompass several key locations:

• Primary Route: Zagvozd – Posusje – Tomislavgrad – Suica – Kupres – Bugojno – Novi Travnik/Travnik.
• Southern Branch: Posusje – Grude – Siroki Brijeg – Mostar, with further extensions planned for Livno, Gornji Vakuf-Uskoplje, Donji Vakuf, Jajce, and Capljina.
• Additional Connections: A secondary line connecting Kladanj to Tuzla within BiH, complemented by the Split – Zagvozd pipeline in Croatia.

Valued at (approximately € 1.5 billion), equivalent to nearly 2.93 billion Bosnian marks, the project will be executed by the American firm AAFS Infrastructure and Energy. The primary objective is to diversify natural gas supply routes and sources, significantly bolstering the energy security of the Federation of BiH.

Construction is slated for completion by 2028. Following the pipeline's commissioning, a seven-year plan is in place to construct three gas-fired power plants located in Kakanj, Mostar, and Tuzla, further integrating the region's energy grid.