Croatia and Bosnia-Herzegovina Sign Deal to Build New Gas Pipeline for Energy Security

DUBROVNIK, Croatia — Croatia and Bosnia-Herzegovina signed an agreement on Tuesday to construct a new gas pipeline aimed at reducing their dependence on Russian energy supplies, marking a significant step toward strengthening regional energy security.

The deal, finalized during the Three Seas Initiative summit in Dubrovnik, establishes the framework for the Southern Interconnection pipeline, which will link Bosnia-Herzegovina’s gas network with Croatia’s infrastructure, including the liquefied natural gas (LNG) terminal on the Adriatic island of Krk. The terminal, which already receives substantial volumes of U.S.-sourced gas, is expected to play a central role in diversifying Bosnia’s energy imports.

Key Details of the Agreement

The pipeline project, designated as a priority for Bosnia-Herzegovina, is being developed by AAFS Infrastructure and Energy, a U.S.-based company. The firm’s leadership includes figures with ties to former U.S. President Donald Trump, such as Jesse Binnall, a former lawyer for Trump, and Joseph Flynn, brother of retired General Michael Flynn, who served as national security adviser during Trump’s first term.

Bosnian Prime Minister Borjana Kristo hailed the agreement as a “major step forward” for the country’s energy security. In a statement posted on social media, she emphasized the pipeline’s role in diversifying supply sources, stating, I signed with Croatia the Southern Interconnection Agreement, boosting energy security and supply diversification.

Croatian Prime Minister Andrej Plenković, who co-signed the agreement, underscored the strategic importance of the project for both nations. The pipeline is expected to reduce Bosnia-Herzegovina’s reliance on Russian gas, aligning with broader European efforts to phase out dependence on Moscow amid geopolitical tensions.

Project Scope and Timeline

The Southern Interconnection pipeline is part of a larger $1.5 billion initiative that includes the construction of gas-fired power plants in Bosnia-Herzegovina. These plants are intended to replace coal-based electricity generation, addressing long-standing air pollution concerns in the country. However, no specific construction timeline has been announced, leaving the project’s completion date uncertain.

The urgency of the project has been heightened by the European Union’s impending ban on Russian gas imports, set to take effect in 2027. Bosnia-Herzegovina, an EU candidate country, faces pressure to align its energy policies with bloc-wide regulations, though the pipeline has drawn scrutiny from Brussels. The EU’s ambassador to Bosnia reportedly sent a letter urging the government to carefully consider its obligations when entering into energy contracts, reflecting concerns about long-term fossil fuel dependence.

Civil Society and International Reactions

The agreement has faced criticism from environmental and civil society groups, who argue that the pipeline risks locking the region into costly and environmentally harmful fossil fuel infrastructure. Advocates for renewable energy have called for greater investment in sustainable alternatives, warning that the project could undermine Bosnia-Herzegovina’s climate commitments.

Despite these concerns, the deal has received backing from U.S. Officials, including Secretary of Energy Chris Wright, who attended the signing ceremony in Dubrovnik. The involvement of American investors and the Krk LNG terminal’s role in supplying U.S. Gas have positioned the project as part of a broader Western strategy to counter Russian influence in the Balkans.

Broader Implications for Regional Energy Security

The Southern Interconnection pipeline is expected to enhance energy resilience in Southeast Europe, a region historically vulnerable to supply disruptions. By connecting Bosnia-Herzegovina to Croatia’s gas network, the project could facilitate access to alternative suppliers, including those in the U.S. And the Mediterranean.

The Three Seas Initiative, a forum promoting infrastructure and energy cooperation among Central and Eastern European nations, provided the backdrop for the agreement. The summit in Dubrovnik underscored the growing emphasis on cross-border energy projects as a means of reducing geopolitical risks and fostering economic stability.

While the pipeline’s long-term impact remains to be seen, the agreement represents a concrete effort by Bosnia-Herzegovina and Croatia to address energy vulnerabilities and align with broader European energy policies. The project’s success will depend on overcoming logistical, financial, and regulatory challenges in the coming years.