Delegates of the House of Peoples of the FBiH Parliament today gave the “green light” to key changes in the law that enable the construction of a strategic gas pipeline at an extraordinary session. With this move, the Federation of Bosnia and Herzegovina is paving the way to complete energy independence, while an American consortium has been appointed as the bearer of the investment.
With 61 votes “for”, the House of Peoples of the Parliament of the Federation of Bosnia and Herzegovina adopted today the Draft Law on Amendments to the Law on “Southern Gas Interconnection Bosnia and Herzegovina and the Republic of Croatia”.
Energy security and the end of Russian gas
The main reason for the urgent adoption of the law is the warning from the European Union about the planned cessation of Russian gas deliveries from January 1, 2028. The construction of the Southern Interconnection, which will enable the delivery of gas from Croatia (LNG terminal Krk), is the only way for the Federation of Bosnia and Herzegovina to avoid a potential energy crisis in the near future.
Entry of American capital into the energy sector
The key change in the text of the law refers to the appointment of investors. The company AAFS Infrastructure and Energy doo Sarajevo, which is fully owned by the American company AAFS Infrastructure and Energy LLC, is listed as the project holder.
According to the explanation of the Federal Government, the American partners expressed their readiness for the immediate implementation and financing of the project in the Letter of Intent, which was assessed as a strategic interest of the Federation of Bosnia and Herzegovina. The law now foresees the direct conclusion of contracts between the FBiH Government and investors, while protecting the interests of the Federation.
Network expansion: Gas also reaches the industrial heart of Tuzla
The new version of the law also brings significant changes in the planned route of the gas pipeline. In addition to the southern directions, the project was expanded to enable faster gasification of the industrial part of the country:
Directions in the south: Tomislavgrad – Šuica – Kupres – Bugojno – Novi Travnik/Travnik i Posušje – Grude – Široki Brijeg – Mostar.
The key new route: Kladanj – Tuzla, which brings the gas directly closer to the Tuzla Thermal Power Plant and large industrial plants.
Next steps
Given that the House of Representatives adopted the same text of the law on April 8, with today’s vote in the House of Peoples, the law is practically ready to enter into force. Next comes the signing of interstate agreements with Croatia and the finalization of contractual obligations with the American investor so that work on the ground can begin as soon as possible, he writes. N1 BiH.
