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Bosnian and Croatian governments announced the signing of an intergovernmental agreement on construction for the pipeline called Southern Interconnection in separate statements on Tuesday.
Also, the signing took place in Croatia’s Dubrovnik and was attended by US Secretary of Energy Chris Wright.
“The United States supports expanding regional gas infrastructure through the Southern Interconnection gas pipeline, allowing the region to import more US LNG, strengthening energy security,” the US DOE said in a statement.
Bosnia does not have an LNG import facility, and it receives only Russian pipeline gas.
The pipeline project has been in the early stages of development for years, but it only took off last year following several moves by the US government.
The implementation of the gas pipeline on Split – Zagvozd (Croatia) and in Bosnia Herzegovina from Posusje – Tomislavgrad – Suica -Kupres – Bugojno – Novi Travnik/Travnik line, with lines towards Livno, Gornji Vakuf-Uskoplje, Donji Vakuf and Jajce, and separate line for Capljina and additional line Kladanj – Tuzla secures diversification of lines and sources of natural gas to enable energy independence of Bosnia and Herzegovina, the Bosnian government said.
The Croatian part is approximately 52 km long, and the Bosnian part is approximately 169 km.
The governments did not reveal details of pipeline capacity.
Previous plans said that the anticipated interconnection capacity is up to 1.5 billion cbm per year.
AAFS Infrastructure and Energy, Greek JV
Bosnia and Herzegovina named US company AAFS Infrastructure and Energy as the main investor and leader of the long-delayed project to build the natural gas pipeline.
Local reports suggest that AAFS Infrastructure and Energy expects to invest approximately $1.2 billion in the project.
Moreover, a joint venture of Greek companies Aktor and DEPA previously signed a framework agreement to deliver US LNG to Bosnia.
The JV signed an agreement with Aluminij Industries and M.T. Abraham Group from Bosnia and Herzegovina for 0.5 Bcm per year.
Aktor said in a separate statement on Thursday that it has signed a commercial agreement with Aluminij Industries and M.T. Abraham Group.
Under the 20-year deal, Aktor LNG USA will supply Aluminij Industries with 0.5 Bcm per year, starting in 2030.
Estimated revenues over the entire duration of the agreement amount to 3 billion euros, Aktor said.
In addition, Aktor LNG USA will collaborate with MT Abraham Group on the development, construction, and operation of a natural gas-fired power plant to be installed at the Aluminij metallurgical plant in Mostar.
The two parties will meet in Mostar during May, where the official signing ceremony will take place, according to Aktor.
Aluminij Industries probably plans to book capacities at the planned LNG pipeline.
In November 2025, US LNG exporter Venture Global LNG signed a sales and purchase deal with the JV of Aktor and DEPA.
This deal marks Greece’s first-ever long-term LNG supply agreement with a US exporter.
Under the SPA, Atlantic–See LNG Trade will purchase a minimum of 0.5 million tonnes per annum (mtpa) of US LNG from Venture Global for twenty years starting in 2030.