Croatia and Bosnia sign Southern Interconnection gas pipeline agreement

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On Tuesday, Croatian Prime Minister Andrej Plenković and Chairwoman of the Council of Ministers of Bosnia and Herzegovina Borjana Krišto signed an agreement to construct the Southern Interconnection gas pipeline, linking the two countries’ gas systems.

The agreement was signed in Dubrovnik during the Three Seas Initiative Summit, following fast-tracked approvals earlier in the day by both governments.

Croatia’s government had adopted the decision to proceed at a telephone session, while Bosnia and Herzegovina’s Presidency and Council of Ministers also gave urgent consent.

The project is designed to integrate the gas infrastructure of both countries and align with European Union energy policy, particularly in developing interconnected and resilient gas markets.

Bosnia and Herzegovina currently relies on a single supply source and route for natural gas. The new pipeline is expected to diversify supply routes and sources, significantly enhancing energy security.

Croatia’s role is central to the project, particularly due to the strategic importance of the LNG terminal on the island of Krk.

With growing capacity for liquefied natural gas imports, Croatia is positioned as a key regional entry point for gas supply into Southeast Europe.

The Southern Interconnection will connect gas networks along a route from Split and Zagvozd in Croatia to Posušje, Tomislavgrad, Kupres, Bugojno and Travnik in Bosnia and Herzegovina.

Additional branches will extend towards Mostar, Livno, Jajce, Čapljina and Tuzla.

The interconnection point between the two systems has been precisely defined using geographic coordinates, marking the physical link between the national networks.

Each country will be responsible for financing and constructing the pipeline section within its own territory, in line with national laws and procurement rules.

Before construction begins, Bosnia and Herzegovina must secure agreements on minimum gas transport capacity, while Croatia will proceed only after confirming market demand through binding capacity allocation procedures or bilateral arrangements ensuring the project’s economic viability.

Operational implementation will be carried out by designated energy companies from both countries, with coordination overseen by Croatia’s Ministry of Economy and Bosnia and Herzegovina’s Ministry of Foreign Trade and Economic Relations.

The pipeline has been identified as a project of strategic importance for both countries and is included in European energy planning frameworks, including the Ten-Year Network Development Plan of the European gas transmission system operators.

It is also part of the European Commission’s Economic and Investment Plan for the Western Balkans, particularly within efforts to transition away from coal and strengthen cleaner energy infrastructure.

In addition to natural gas transport, the project has been recognised as compatible with future hydrogen infrastructure development, reflecting longer-term energy transition goals.

The agreement sets out timelines for construction and requires further arrangements between project operators regarding maintenance, operation and cross-border coordination.

The Southern Interconnection is expected to play a key role in improving energy resilience, market integration and supply diversification across Southeast Europe.