FBiH Parliament confirms US consortium’s lead in Southern Interconnection pipeline

The urgency behind this legislative action stems from warnings issued by the European Union regarding the planned cessation of Russian gas supplies starting January 1, 2028. The construction of the Southern Interconnection, which will enable the transport of gas from Croatia via the Krk LNG terminal, represents the only viable path for the FBiH to avoid a potential energy crisis in the near future. The next phase of the project involves the signing of an interstate agreement between Bosnia and Croatia, scheduled for the end of the month in Dubrovnik.

A key revision in the law concerns the designation of the project holder. AAFS Infrastructure and Energy d.o.o. Sarajevo, a company wholly owned by the American entity AAFS Infrastructure and Energy LLC, has been named as the lead investor. According to the FFBiH Government's explanation, the American partners expressed readiness for the immediate implementation and financing of the project through a Letter of Intent, which was assessed as a matter of strategic interest for the FBiH. The law now provides for the direct conclusion of a contract between the FBiH Government and the investor, ensuring the protection of federal interests.

Beyond securing energy supplies, the new version of the law introduces significant expansions to the planned pipeline route to accelerate the gasification of the country's industrial heartland. In addition to the southern routes: Tomislavgrad, Suica, Kupres, Bugojno, Novi Travnik/Travnik and Posusje, Grude, Siroki Brijeg, Mostar, a critical new branch has been added connecting Kladanj to Tuzla. This extension will bring gas directly to the Tuzla Thermal Power Plant and major industrial facilities in the region.

Since the House of Representatives adopted the identical text on April 8, Wednesday’s vote in the House of Peoples means the law is effectively ready for implementation. Following the upcoming diplomatic signatures in Croatia and the finalization of contractual obligations with the American investor, field work is expected to commence as soon as possible to meet the looming 2028 deadline.