The government of Bosnia and Herzegovina officially received a letter of intent from the American company AAFS Infrastructure and Energy regarding the construction of the Southern Interconnection pipeline, which is planned as a new gas supply route to the country.
According to Ukrainian intelligence, this step is viewed as strategic for diversifying Bosnia and Herzegovina’s energy resources and reducing dependence on existing suppliers.
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.
– Foreign Intelligence Service of Ukraine
Diversification of risks via a potential American gas pipeline could reduce Gazprom’s monopoly in the region and strengthen the EU’s position in the European gas market.
Construction is planned to begin in 2026, and the project is estimated to cost roughly $200 million.
As part of the proposal, the project also foresees the construction of a gas-fired power plant, the expansion of the Kladanj – Tuzla pipeline, and the modernization of the airports in Sarajevo and Mostar.
In the context of the broader European energy diversification, Russian gas is gradually losing its position: by 2021, Russia supplied the EU with about 157 billion cubic meters of gas per year, and by the end of 2025, Russia’s share in the EU stood at approximately 13%, experts note. Transit through Ukraine from 2021 to 2024 decreased from 40 bcm to 17 bcm, and as of January 1, 2025, it had completely ceased.
Changes in the European gas import framework and new supply routes reflect the growing need of BiH and the region for safe and diverse sources of gas, underscoring the importance of such investments for energy security and economic stability.