Bosnia’s southern gas interconnection with Croatia awaits state approval

The Government of the Federation of Bosnia and Herzegovina (FBiH) has informed the Council of Ministers of BiH about progress on the southern gas interconnection project. However, the proposed interstate agreement between Bosnia and Croatia has not yet been placed on the state government's agenda, Fena news agency was told.

The agreement must be formally nominated by the State Minister of Foreign Trade and Economic Relations, Stasa Kosarac, before it can be considered.

Agreement Still Awaiting State-Level Procedure

At an earlier session, the Government of the FBiH, one of Bosnia's two entities where the project will be implemented, proposed the urgent formation of a negotiating delegation comprising representatives of all relevant institutions, aiming to accelerate the signing process between the two countries.

Once the Council of Ministers approves the text of the agreement, it will forward the document to the Presidency of BiH. The Presidency would then decide on accepting the agreement and appoint the official signatories on behalf of the state.

The office of Presidency Chairman Zeljko Komsic confirmed to Fena that the agreement has not yet reached the Presidency because it has not completed the Council of Ministers procedure.

Strategic Shift Away From Russian Gas

The southern gas interconnection project means the construction of a new gas pipeline within Bosnia and Herzegovina. The pipeline would connect to Croatia’s existing network via Posusje and Zagvozd, providing access to gas supplies from the LNG terminal on the Croatian island of Krk.

Bosnia and Herzegovina currently depends entirely on imports of Russian gas, making the project a major step toward supply diversification and long-term energy security.

Minister of Foreign Affairs Elmedin Konakovic said the draft law on the southern interconnection, prepared by an expert working group, has been accepted and should soon be forwarded to the FBiH level.

“I think it will happen as soon as possible, because it is a project that the US administration firmly stands behind and that has no opponents. We are firmly convinced that this is a top economic, geopolitical and infrastructure project, especially since we will bypass Russian gas,” Konakovic told Fena.

Amendments to Enable Foreign Investment

The project’s implementation is linked to amendments to the federal Law on the Southern Interconnection between BiH and Croatia, adopted last year in the FBiH Parliament.

In early February, an expert working group finalized draft amendments aimed at adjusting the implementation model and enabling foreign investors to participate through concessions or public-private partnerships.

Under the existing law, BH-Gas company is designated as the investment holder. The proposed amendments would instead define the investor through an open and transparent selection procedure.

FBiH Minister of Energy, Mining and Industry Vedran Lakic said the concession model appears to be the most realistic option for implementation.

Talks in Zagreb, Signing Planned for April

An FBiH Government delegation recently held talks in Zagreb with Croatian Prime Minister Andrej Plenkovic and ministers Oleg Butkovic and Ante Susnjar on continuing the project.

According to Lakic, the procedure for signing the interstate agreement has already been initiated and is currently with the Ministry of Foreign Trade and Economic Relations of BiH, following its submission by the FBiH Government.

“The appointment of the BiH negotiating team at the Council of Ministers is expected soon. I believe that the Republic of Croatia will also soon complete its part of the appointment, and that we will begin talks very soon. The plan is to sign an interstate agreement between Croatia and Bosnia and Herzegovina in Dubrovnik in April, at one of the major conferences,” Lakic said.

2027 Deadline Aligned With EU Ban

The full implementation deadline for the project is the end of 2027, when a European Union decision to ban imports of fossil fuels, including gas from Russia, takes effect.

The Southern Gas Interconnection is widely considered one of Bosnia and Herzegovina’s key energy infrastructure projects, aimed at ensuring long-term energy stability and diversifying supply sources at a time of major geopolitical shifts in Europe.