Construction of the Southern Interconnection Gas Pipeline
The government of Bosnia and Herzegovina has approved the implementation of a U.S.-backed project to build the Southern Interconnection gas pipeline. This initiative is designed to reduce reliance on Russian gas, which is currently supplied via the TurkStream pipeline. The planned pipeline will link Bosnia and Herzegovina to the liquefied natural gas (LNG) terminal on Croatia's Krk island, thereby diversifying the nation's energy supply sources. The project represents an investment of approximately $200 million, with construction slated to begin in 2026.
Major Shifts in European Gas Imports
Data shows that in 2021, Russia supplied up to 45% of Europe's gas imports, amounting to around 157 billion cubic meters. However, by the end of 2025, the share of Russian gas in European Union imports is projected to fall to just 13%. The EU has formally committed to ending Russian gas supplies from 2027 onward, marking a profound shift in the region's energy policy. This rapid reduction is a direct consequence of geopolitical tensions following Russia's invasion of Ukraine.
As part of the broader project, the U.S. has also proposed to:
- Construct a new gas-fired power plant;
- Modernize airports in Sarajevo and Mostar;
- Expand the domestic pipeline network.
These steps are intended to foster the development of Bosnia and Herzegovina's energy infrastructure and ensure greater energy independence.
The chronology of Russia's declining gas influence in Europe includes the reduction of Ukrainian transit from 40 billion cubic meters in 2021 to its complete cessation starting January 1, 2025. Supplies via the Nord Stream pipeline to Germany, which stood at 59.2 billion cubic meters, were halted in 2022, while exports via the Yamal–Europe pipeline, at 31 billion cubic meters, ceased three years ago. These changes underscore Europe's concerted efforts to reduce its dependence on Russian energy resources.
The realization of the Southern Interconnection project is a significant step for Bosnia and Herzegovina amid global shifts in energy supply. Reducing dependence on Russian gas and diversifying supply sources can enhance not only the country's energy security but also regional stability. The project is expected to form part of Europe's broader strategy to transition toward alternative energy sources, aligning with goals for energy independence and sustainable development.