The idea of investors from the United States building the Southern Gas Interconnection could reconcile the long-standing views of domestic politicians on this issue.
This is considered by the representatives of BiH. authorities who have been meeting with representatives of the US administration in recent days. The US Embassy says that Bosnia and Herzegovina is at an energy turning point. The first works on the project could start as early as next year.
What would BiH gain, and what would the citizens get?
An increasingly likely option is for US companies to be awarded a concession to develop, build and operate the Southern Gas Interconnection. The future concessionaire would also provide finance for the execution of the works. The value of the Southern Gas Interconnection construction project is close to 400 million euros (about 800 million KM).
“The Americans are slowly winning this energy showdown with Russia in the Western Balkans, which is geopolitically very important for BiH,” said Elmedin Konaković, Minister of Foreign Affairs of BiH.
The next step is to amend the Law on Southern Gas Interconnection. According to the current law, which was adopted in the federal parliament in mid-January, the project holder is BH Gas. The law currently does not allow the inclusion of a private concessionaire. The Troika parties previously said that BH Gas would not play a role in this case.
“All the representatives of the political parties accepted that this could be an option that could reconcile these things we have. For that to happen, we have to amend the Law,” said Nermin Nikšić, Prime Minister of the Federation of Bosnia and Herzegovina.
BH Gas said that they continue to work according to the Law on Southern Interconnection, which was adopted in the House of Representatives of the federal parliament. Until now, the parties gathered around the HDZ opposed the Law, demanding the establishment of a new company to manage the project. The Chairperson of the Council of Ministers of Bosnia and Herzegovina recalls the agreement between Bosnia and Herzegovina and Croatia, she writes BHRT.
“When that law is adopted according to the concept they discussed, according to the concept of agreement and mutual respect, I don’t think in any way that the conclusion of an agreement will come or be questionable”, said Borjana Krišto, chairperson of the BiH Council of Ministers.
The agreement between BiH and Croatia is also mentioned by the American Embassy:
“It is necessary to agree and conclude an agreement between BiH and Croatia as soon as possible, in order to enable the import of American liquefied natural gas into BiH.”
SNSD is of the opinion that there should be a Southern connection, but at the same time advocating an Eastern interconnection.
“The RS has never blocked the Southern Interconnection. It emphasized the importance of working in parallel on both the Eastern and Southern Interconnections,” said Staša Košarac, Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina.
There are still many unknowns, from the price of gas, distribution, transport, supply. The previously planned capacity of the Southern Interconnection is four times greater than the current needs of BiH.
“I think it is important that it is made and that it serves its purpose, which is the energy security of BiH and that it brings to the citizens, if possible, a more favorable energy source, a safer energy source. Automatically, the process is very complex, transport is more expensive, and it is very difficult to expect it to be cheaper,” said Nihad Harbaš, an expert on energy and climate change.
The Southern Interconnection project is of great importance for all citizens and the energy stability and independence of Bosnia and Herzegovina, and the contribution of the USA is key to solving this issue after a long-term standstill, it was said at the meeting of the Prime Minister of the Federation of Bosnia and Herzegovina, Nermin Nikšić, with the Director of the Office of the Bureau of European and Eurasian Affairs of the US State Department, Mark Fleming.
