Title: Bosnia Advances Plans for New Pipeline to Lessen Reliance on Russian Gas
Bosnia and Herzegovina is edging closer to constructing the Southern Interconnection natural gas pipeline, an initiative aiming to bolster energy security and lessen the nation's reliance on Russian supplies.
The main objective of this project is to diversify gas sources and routes by importing liquefied natural gas (LNG) from a terminal on Croatia's Krk island and accessing Caspian region resources. If completed, it would mark the first gas pipeline interconnector between Bosnia and Croatia, boasting a capacity of 1.5 billion cubic meters.
On January 16, Bosnia's House of Peoples approved legislation paving the way for this project, tackling a substantial legislative hurdle after over a decade of political deadlock.
Political standstills and energy security
The proposed 217-mile pipeline will snake through Croatia, Montenegro, and Bosnia before reaching Albania, with the Bosnian segment stretching from Posušje through Mostar to Novi Travnik. The project is projected to take roughly a decade to complete.
Initial estimates pegged the cost at around $108 million, set to be funded by the European Bank for Reconstruction and Development (EBRD). However, more recent estimates suggest the price tag may climb to over $216 million.
The Southern Interconnection aligns with the European Union's strategic objectives, such as the Economic and Investment Plan for the Western Balkans, serving as a temporary measure in the transition from coal to cleaner energy sources. There are also plans to future-proof the pipeline by making it adaptable to hydrogen once fossil fuels are phased out.
Although natural gas accounts for only 3% of Bosnia's total energy mix, its significance in driving economic progress, powering factories, and heating facilities around Sarajevo cannot be understated.
Despite relying entirely on Russian supplies delivered via TurkStream, which enters the country from Serbia and passes through the Serb-controlled Republika Srpska—a region repeatedly threatening secession—Bosnia has not diversified its energy supply since Russia's invasion of Ukraine in February 2022.
The idea for the pipeline dates back to 2009 when a Russian gas cutoff left approximately 100,000 Bosnian households without heat for two weeks in subzero temperatures, forcing businesses to curtail operations or close down altogether.
Political Impasses and Delays
The project has struggled to gain traction due to significant political obstacles. A major hurdle was resistance from Bosnian Croat parties, who repeatedly hindered its adoption in parliament. They insisted on forming a new company, managed by ethnic Croats and headquartered in the Croat-populated city of Mostar, instead of the state-owned BH-Gas in Sarajevo.
This resistance, which has drawn criticism from the U.S. Embassy and EU officials, has hampered Bosnia's energy security and allowed Russia to maintain its grip on the country's natural gas supply monopoly.
In January 2024, U.S. Secretary of State Antony Blinken penned a letter to the foreign ministers of Bosnia and Croatia, decrying the delays as detrimental to Bosnia's national interests. He accused Bosnian Croat politicians of prioritizing political gain over the country's energy independence.
Erosion of Russian Influence
Besides impeding Bosnia's pursuit of more reliable energy sources, the political impasse has also hindered efforts to diminish Russia's influence in the Balkans.
The Russian Embassy in Sarajevo has accused the United States of attempting to undermine Bosnia's unity by championing the pipeline, suggesting that it is planting a "bomb" under the country's integrity. They drew parallels between a recent meeting between U.S. Ambassador to Bosnia Michael Murphy and Bosnian policymakers and former President Joe Biden’s visit to Kyiv, implying that interference by the United States only serves to harm countries they attempt to support.
Russia has sought to destabilize Bosnia and hinder its EU and NATO aspirations through its alliance with the government of Milorad Dodik, who governs Republika Srpska. Dodik and his entourage have been subjected to U.S. sanctions for exploiting public resources while attempting to orchestrate a secessionist movement within Bosnia.
Serb Bosnian politicians have also threatened to jeopardize the Southern Interconnection, conditioning support on the construction of a second natural gas pipeline financed and built by Russia.
Environmental Concerns
The pipeline project has also drawn criticism from environmental groups, who argue that it will perpetuate Bosnia's dependence on fossil fuels and delay its shift to renewable energy sources. They contend that the project contradicts climate goals and obstructs the country's transition to cleaner energy by expanding gas infrastructure and promoting gasification.
The strategic implementation of the Southern Interconnection natural gas pipeline under Bosnia's leadership could serve to reduce the nation's reliance on Russian gas supplies and bolster energy security. Effective leadership in navigating political obstacles, such as resistance from Bosnian Croat parties, is crucial for the pipeline's completion and the country's energy independence.
