Bosnia and Herzegovina moves toward Croatia gas link as draft interstate deal advances

Bosnia and Herzegovina has taken a concrete step toward building a new cross-border gas connection with Croatia, advancing a draft interstate agreement that will allow official talks to begin. For investors and energy stakeholders, the move matters because it ties a major infrastructure project to changes in financing structure and to a stated goal of reducing reliance on Russian gas imports.

Draft agreement clears the way for negotiations

The proposal was approved at an extraordinary session of the Government. It sets out plans for construction of a pipeline segment linking the Croatian gas network near Zagvozd with Bosnia’s system at Posušje. The draft will serve as the foundation for negotiations between delegations tasked with finalizing the interstate agreement.

Private US investor expected to finance and operate under concession

A central feature of the project is the role assigned to AAFS Infrastructure and Energy, a privately owned US company designated as the main investor under recently updated legislation. The company is expected to finance the portion of the pipeline within Bosnia and operate it under a long-term concession, likely lasting at least 30 years.

Energy security benefits hinge on LNG access through Croatia

Officials framed the interconnection as strategically significant for Bosnia’s energy security. By connecting to Croatia’s network, Bosnia and Herzegovina would gain access to liquefied natural gas delivered via the Krk terminal, which would reduce dependence on Russian gas imports.

Network expansion planned beyond the border

The planned system is not limited to the border crossing. The network is expected to extend into multiple regions, including routes passing through central areas such as Tomislavgrad, Kupres and Travnik. Another branch would serve western and southern cities including Široki Brijeg and Mostar, with additional extensions planned toward Tuzla and other industrial hubs.

Next approvals and potential signing timeline

A negotiation team has been appointed, comprising ministers from both state-level institutions and entities within Bosnia and Herzegovina. After approval by relevant bodies, including forwarding of the draft agreement to the Presidency for further consideration, procedures could lead to formal signing during the upcoming Three Seas Initiative Summit in Dubrovnik later this month.

If timelines hold through each stage of approval, Bosnia’s progress toward an interstate gas deal with Croatia could accelerate planning for both cross-border connectivity and broader domestic distribution—an outcome that would shape how quickly LNG-linked supply options can be integrated into Bosnia’s energy mix.