Croatia and Bosnia have signed an agreement to construct a gas pipeline aimed at reducing their energy reliance on Russia, a significant move for the volatile Balkans region. The deal was finalized on Tuesday by Croatian Prime Minister Andrej Plenkovic and the chair of Bosnia's Council of Ministers, Borjana Kristo, in the presence of U.S. Secretary of Energy Chris Wright on the sidelines of a summit of Baltic, Black, and Adriatic nations.
Project Details
The Southern Interconnection pipeline will connect Bosnia to Croatia's gas network and the liquefied natural gas terminal on the Adriatic island of Krk. Bosnia has selected AAFS Infrastructure and Energy, a U.S.-based company, as the investor and developer for the project. Local media reports suggest the investment could reach up to $1.5 billion.
Strategic Importance
Currently, Bosnia imports nearly all its gas from Russia via pipelines through Serbia and Bulgaria along the TurkStream route. This new pipeline is expected to diversify energy supplies and enhance security. Prime Minister Plenkovic stated on social media, "We are strengthening energy security and independence ... which is especially important in these challenging global circumstances." Kristo called it "a big day for both countries."
The U.S. delegation included Under Secretary of State for Political Affairs Allison Hooker, who emphasized that the United States can help "reduce energy dependency on Russia and to spur economic growth" in the region.
Additional Developments
Separately, investment group Pantheon Atlas LLC announced plans for a 50 billion-euro ($58 billion) "hyperscale AI data center and innovation campus" in Croatia. A letter of intent was signed with Croatia's Koncar Group as a local partner.
