Bosnia and Herzegovina is taking a significant step toward diversifying its energy resources with plans to construct the Southern Interconnection gas pipeline. The project, which recently received a letter of intent from the American company AAFS Infrastructure and Energy, is expected to create a new gas supply route for the nation.
The planned pipeline will connect Bosnia and Herzegovina to the liquefied natural gas (LNG) terminal on Croatia's Krk island, offering an alternative to existing supply routes. Currently, the country relies on the Turkish Stream pipeline, which exclusively delivers Russian gas. This new initiative promises to reduce dependence on Russian gas while fostering energy security.
According to Ukrainian intelligence, this development is seen as a strategic move to mitigate risks and diversify energy sources. "The gas pipeline will connect the country to the liquefied natural gas terminal on the Croatian island of Krk. This will create an alternative to the ‘Turkish Stream,’ which currently has the sole capacity to supply gas to BiH, and that gas is Russian."
The Southern Interconnection pipeline is projected to cost approximately $200 million, with construction anticipated to begin in 2026. Alongside the pipeline, the proposal includes additional infrastructure projects, such as the construction of a gas-fired power plant, the expansion of the Kladanj–Tuzla pipeline, and upgrades to Sarajevo and Mostar airports.
This investment aligns with broader European efforts to reduce reliance on Russian energy supplies. By 2021, Russia provided the European Union with 157 billion cubic meters of gas annually. However, by the end of 2025, Russia's share in the EU gas market had dropped to around 13%. Transit volumes through Ukraine saw a similar decline, plummeting from 40 billion cubic meters in 2021 to 17 billion cubic meters in 2024, before ceasing entirely as of January 1, 2025.
The Southern Interconnection pipeline joins a wave of new supply routes and updated frameworks for energy imports across Europe. Such initiatives underscore the growing need for safe and diverse gas sources in Bosnia and Herzegovina and the wider region. Diversifying gas supply options not only strengthens energy security but also contributes to economic stability.
With support from international partners and a clear focus on diversification, Bosnia and Herzegovina’s latest energy strategy signals a significant shift toward reducing dependence on single-source suppliers. This marks a critical step forward in the country’s pursuit of greater energy resilience and sustainability.
