Southern Interconnection looks for a new route: US investors prepare a new feasibility study

The Southern Interconnection gas pipeline, meant to give Bosnia and Herzegovina a second gas supply route, could be built along a new route. The US company AAFS is preparing a feasibility study for an option that would avoid problems related to state-owned property, according to a report by public broadcaster Federalna aired on 2 November.

What was discussed. The Federation of BiH Minister of Energy, Mining and Industry, Vedran Lakić, held a working meeting the same day with Amer Bekan, the AAFS representative, at which he was briefed on the progress of the study, the ministry said. “Our goal is for the Southern Interconnection project to move from the preparation phase to the phase of concrete implementation as soon as possible,” Lakić said. Once completed, the study will be submitted to the Federation government for review and approval.

Why a new route. According to Federalna, BH-Gas said that the European Union, which financed the existing documentation several years ago and owns it, does not agree to its transfer to the Federation, so an entirely new project was launched. The investors say they will use land and corridors owned by the state and by the public company Ceste FBiH, and the route could be longer and more expensive. “We are working to use as much land and as many solvable routes as possible,” Bekan said, adding that the Southern Interconnection law remains the basis of the project.

Context. Bosnia and Herzegovina receives gas through a single route, via Serbia, and the gas is of Russian origin, Radio Free Europe noted in August, citing Federation estimates of EUR 405–810 million for the project, depending on the final route. The contract the Federation government is to sign with the US investors is several months late, and the original deadline was the end of 2027, when the ban on Russian gas imports takes effect, Federalna and the Akta.ba portal note.

What comes next. The Federation government will decide whether to accept the feasibility study; construction costs and timeline remain unconfirmed for now.

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