US investors discuss Southern Interconnection gas project at BiH Parliament

Flynn and Binnal, the company’s president and vice president, have been in Sarajevo since the beginning of the week and have already met with several key political leaders. However, some of their statements suggest that the project, previously enjoying broad support, has once again become the subject of political disputes typical of the country.

After a meeting at the BiH Parliament today, Sabina Cudic, MP and leader of Our Party (Nasa stranka), which is part of the governing coalition, said that support for the Southern Interconnection and linkage to Croatia's gas network is general, but warned that the project could be jeopardised by individual party interests.

She openly criticised HDZ BiH leader Dragan Covic, who earlier this week proposed establishing a new company in Mostar to implement the project. Covic spoke of an "association" of Croatian and Bosnian companies headquartered in Mostar, arguing this was necessary to protect the interests of the Croat people and other constituent peoples.

His proposal raised concerns among coalition partners, given the earlier agreement in principle that construction and operation of the pipeline through BiH should be entrusted to an American investor, i.e. a private company.

Cudic said it was unacceptable for Our Party to involve three companies, one from Croatia, BH Gas from BiH, and a new company in Mostar, arguing that this would complicate implementation and create opportunities for political deadlocks.

The Parliament of the Federation of BiH entity adopted the law on the Southern Interconnection pipeline in early 2025, following direct intervention by then U.S. Ambassador Michael Murphy.

The Trump administration has continued to push the project, and after the HDZ BiH and Bosniak parties failed to agree on project leadership, the US side proposed assigning it to a private American company.

AAFS Infrastructure and Energy LLC has so far shown the strongest interest. The visit of its executives included U.S. Chargc d’Affaires John Ginkel, a clear signal of direct support from the Trump administration.

The company to be awarded the contract would receive a concession to operate the pipeline for at least 30 years, while BiH would eliminate its dependence on Russian gas.