Historic event in Dubrovnik: Bosnia and Croatia commit to Southern Interconnection

The finalized agreement introduces several significant technical and structural revisions compared to previous drafts. Notably, the American firm AAFS has been removed from the text; the document now refers broadly to the entities designated as project holders. This adjustment was reportedly necessitated by Brussels to ensure full compliance with European Union directives, as Croatia must adhere to EU competitive regulations. Furthermore, while initial domestic legislation in the Federation of BiH had specific companies named, potentially bypassing competitive procurement, the final bilateral agreement omits these details to align with international legal standards.

A new and pivotal clause in the final version involves a commitment from Bosnia to lease capacity at the Krk LNG terminal. Sarajevo is now obligated to secure long-term transport of liquefied natural gas (LNG) prior to the commencement of construction. For its part, Croatia has committed to conducting a comprehensive feasibility study to guarantee the economic viability of the pipeline extension toward the BiH border.

Foreign Minister Elmedin Konakovic hailed the agreement as a "historic project" that will fundamentally alter the economic and geopolitical landscape of the Western Balkans. By connecting to the Croatian gas network, Bosnia and Herzegovina aims to end its long-standing and total dependency on Russian gas supplies. "It is rewarding to leave behind a project of this magnitude," Konakovic stated, adding that the joint cooperation between BiH, Croatia, and the United States was a significant positive development.

The project is one of ten major US-backed agreements highlighted during the summit, which focused on strengthening transport, digital, and energy connectivity across Central and Eastern Europe. The Southern Interconnection, valued at approximately 2.93 billion Bosnian marks (approx €1.5 billion), remains a cornerstone of the region's strategy to bolster energy security and resilience against foreign supply disruptions.