Bosnia Moves Forward with Southern Gas Pipeline Project to Reduce Russian Reliance

Bosnian House of Peoples has adopted legislation clearing the construction of the Southern Interconnection natural gas pipeline project, overcoming a major legislative obstacle after more than 15 years of political gridlock.
Announced on January 16, the move puts Bosnia and Herzegovina closer to constructing the Southern Interconnection gas pipeline, a project designed to bolster energy security and reduce the country’s dependence on Russian fossil fuel supplies.
The 217-mile pipeline would traverse Croatia, Montenegro, Bosnia, and Albania, with the Bosnian section running from Posušje through Mostar to Novi Travnik. According to reports, the project is expected to be completed within a decade.
The new interconnector pipeline initiative aims to diversify gas routes and sources by importing American liquefied natural gas (LNG) from a terminal on Croatia’s Krk island and accessing resources in the Caspian region.
When completed, the pipeline would be the first gas interconnector between Bosnia and Croatia, boasting a capacity of about 1.5 billion cubic meters.
Initial cost estimates were around $108 million, to be covered by the European Bank for Reconstruction and Development. However, more recent projections indicate costs may exceed $216 million.
The Southern Interconnection is part of the European Union strategic priorities, alongside the Economic and Investment Plan for the Western Balkans, as a temporary measure to transition from coal to cleaner energy. Plans are also in place to adapt the pipeline for hydrogen use once fossil fuels are phased out.
This pipeline concept originated in 2009 after a Russian gas cutoff left approximately 100,000 Bosnian households without heat for two weeks during subzero temperatures, forcing businesses to reduce operations or close.
However, it has faced multiple political hurdles, notably resistance from Bosnian Croat parties, who repeatedly blocked its parliamentary adoption, demanding a new company managed by ethnic Croats and headquartered in Mostar oversee the project instead of the state-owned BH-Gas, based in Sarajevo.
This obstruction, criticized by the U.S. Embassy and EU officials, has jeopardized Bosnia’s energy security and allowed Russia to maintain its gas supply monopoly. Unlike many European nations, Sarajevo has not diversified its energy supplies since Russia’s invasion of Ukraine in February 2022, despite imposing sanctions on Moscow.
Although natural gas accounts for less than 3% of Bosnia’s total energy mix, it is still crucial for the country’s economy, powering factories and heating plants around Sarajevo.
Bosnia has relied entirely on Russian supplies delivered via TurkStream, entering the country from Serbia and passing through the Serb-dominated Republika Srpska, a region that has repeatedly threatened secession.
Local environmental groups have also criticized the pipeline, arguing that while it aims to reduce dependence on Russian gas, it could lock Bosnia into continued fossil fuel use rather than accelerating a shift to clean energy.
According to the groups, the project contradicts climate goals and delays the country’s transition to renewable sources by expanding gas infrastructure and promoting further gasification.
In January 2024, U.S. Secretary of State Antony Blinken sent a letter to the foreign ministers of Bosnia and Croatia, calling the delays detrimental to Bosnia’s national interests and accusing Bosnian Croat politicians of prioritizing political gains over energy independence.