FBiH clears legal hurdles for Southern Gas Interconnection as EU deadline nears

Lawmakers in the Federation of Bosnia and Herzegovina (FBiH) have taken a decisive step toward advancing the Southern Gas Interconnection after approving amendments to the legal framework governing the project. Adopted at an extraordinary session of the House of Peoples of the FBiH Parliament, the changes are designed to clear major regulatory obstacles and allow implementation to progress.

With parliamentary support secured in both chambers—since the same legislative package had already been approved by the lower house—the upper-house vote effectively completes the domestic legislative process. The revised law will now require formal publication before it can enter into force, while attention turns to concluding an intergovernmental agreement between Bosnia and Herzegovina and Croatia, which is expected to be signed soon.

EU gas supply shift raises urgency

The legislative push is tied to evolving European Union energy policy. The EU plans to phase out Russian gas supplies by early 2028, increasing pressure on regional governments to secure alternative routes. Within that context, the Southern Gas Interconnection is positioned as a safeguard against potential supply disruptions.

Developer named; route expanded for industrial gasification

A key feature of the updated framework is the designation of the project developer. The role has been assigned to AAFS Infrastructure and Energy Sarajevo, a company fully owned by US-based AAFS Infrastructure and Energy. The company has indicated readiness to begin financing and implementation without delay.

The revised plan also calls for an expanded pipeline route intended to accelerate gasification in industrial areas. New pipeline corridors are set to run through multiple municipalities in central and western FBiH, while an additional branch toward Tuzla is expected to strengthen supply for major industrial users as well as the local thermal power plant.

As Bosnia and Herzegovina moves from legislative approval toward execution, investors will be watching closely for progress on two fronts: finalizing arrangements with Croatia and locking in terms with the selected developer. Those steps will determine how quickly construction can begin.