The construction of southern gas pipeline is the highest priority project for FB&H, according to the Draft Law on the Gas Pipeline "Southern Interconnection of Bosnia and Herzegovina and the Republic of Croatia", in which "Avaz" had insight into. The Government of FB&H has sent the draft law for further procedure.
This project received support from the United States government and so far has been significantly funded by USAID.
Heavy burden
The explanation of the need to enact this law states that FB&H is currently supplied with gas from only one direction and one source, using a transport pipeline that crosses the border between Serbia and B&H in Šepak and then continues to Zvornik, Kladanj, Sarajevo, Zenica and Travnik.
- The existing gas pipeline, which was built in 1979, is characterized by obsolescence and high load during the winter, when gas consumption is at its peak. Therefore, the construction of a new gas interconnection, on the route Zagvozd (Republic of Croatia) - Posušje (B&H) - Tomislavgrad - Šuica - Kupres - Bugojno - Novi Travnik / Travnik, with a branch for Mostar, is recognized as a project of the highest priority - it was explained.
They added that this project is included in all strategic, planning and developmental key documents enacted at the level of FB&H and B&H.
Multiple sources
- Its implementation is crucial for maintaining security of gas supply throughout the FB&H, as well as for diversification of sources and directions of gas supply, and that's why the project "Southern Interconnection" is one of the most important in the field of energy in FB&H - it was pointed out.
It was clarified that the new southern gas pipeline belongs to the category of line infrastructure facilities that are specific in the way that they cover a wider geographical territory, pass through a large number of land parcels and cross different types of land.
Due to this reason, it was necessary to draft a special law that would regulate the construction of the "Southern Interconnection" by prescribing a special administrative procedures for issuing licenses with shortened deadlines, which would ensure the efficient implementation of the strategic project - it was emphasized.
Commissioning of the new gas pipeline is planned for 2024.
Obligations of "BH-Gas"
- "BH-Gas" is determined as the holder of investment of the project "Southern Interconnection". The investor will implement the project throughout two phases - the construction of an interconnection transport pipeline and the construction of a branch for Mostar. After the commissioning of the gas pipeline, the investor is obliged to ensure its safe operation and all technical conditions for acceptance into the gas transmission system that is imported from various sources from the mentioned direction, and its delivery to consumers - the draft law states.
How it will be financed
- The implementation of the project will be financed from the funds of international institutions secured through loans and grants and on top of this from own funds of "BH-Gas".The loan repayment will be secured by revenues generated by the collection of transport / transit tariffs - it was explained.