Croatian Prime Minister Andrej Plenković and Borjana Krišto, Chairwoman of the Council of Ministers of Bosnia and Herzegovina, signed a pivotal agreement Tuesday to construct the Southern Interconnection gas pipeline, a project aimed at reshaping energy security in Southeast Europe.

The signing took place during the Three Seas Initiative Summit in Dubrovnik following a flurry of fast-tracked approvals. 

Both governments held urgent sessions earlier in the day to greenlight the deal, which seeks to integrate the gas infrastructure of the two neighbors in alignment with European Union energy standards.

The project is a strategic shift for Bosnia and Herzegovina, which currently relies on a single supply source and route for its natural gas. 

By linking to the Croatian network, the country expects to diversify its energy imports and significantly bolster its domestic energy resilience.

Croatia’s role is anchored by its liquefied natural gas (LNG) terminal on the island of Krk. With the terminal’s expanding capacity, Croatia is increasingly positioned as the primary energy gateway for the Western Balkans.

The Southern Interconnection will run from Split and Zagvozd in Croatia to Posušje, Tomislavgrad, and Travnik in Bosnia and Herzegovina, with additional branches planned for Mostar and Tuzla. 

Each nation will be responsible for financing and constructing the pipeline segments within its own borders.

Before breaking ground, Bosnia and Herzegovina must secure minimum transport capacity agreements. 

Croatia will move forward once market demand is confirmed through binding allocation procedures to ensure economic viability.

Beyond immediate fossil fuel needs, the pipeline is designed for the future. Included in the European Commission’s Economic and Investment Plan for the Western Balkans, the project is recognized as compatible with future hydrogen infrastructure, aiding the regional transition away from coal.

Implementation will be managed by designated national energy companies, with oversight provided by the respective ministries of economy and foreign trade. 

The pipeline is already listed in the Ten-Year Network Development Plan by European gas transmission operators, underscoring its importance to the broader European energy grid.