Newsletters
Bosnia approved a $1.5 billion energy project on Wednesday, led by investors linked to U.S. President Donald Trump, that aims to reduce the Balkan country’s dependence on Russian natural gas.
The project is being advanced by the newly established company AAFS Infrastructure and Energy, headed by Joseph Flynn and Jesse Binnall.
The law approving the Gas Pipeline Southern Interconnection project passed Bosnia’s upper house one week after clearing the lower chamber.
In addition to the pipeline, the project includes construction of gas-fired power plants intended to reduce Bosnia’s reliance on coal-generated electricity in a country long plagued by severe air pollution.
The pipeline will run through the Bosniak-Croat Federation, one of Bosnia’s two largely autonomous entities alongside Republika Srpska.
Once completed, it will connect Bosnia to the European gas network through Croatia, including access to the LNG terminal on Croatia’s Krk Island, which receives substantial U.S. gas shipments.
The interconnection will have a maximum annual capacity of 3 billion cubic meters — enough to supply three or four gas-fired power plants planned under the project.
Bosnia currently imports between 230 million and 250 million cubic meters of gas annually and relies entirely on Russian gas delivered via pipeline through Serbia.
Environmental organizations criticized the approval, urging lawmakers to reject what they described as a harmful fossil-fuel project carrying legal and financial risks.
“One of the key decisions on Bosnia's energy sector was made hastily, under enormous political pressure from the fossil fuel lobby of the U.S. administration,” said Nina Kresevljakovic of Sarajevo-based Aarhus Centre.
Critics also questioned AAFS Infrastructure and Energy’s lack of experience, noting the company was established only in late 2025.
Company representatives defended the venture, saying AAFS serves as an investment platform bringing together experienced engineering and financial partners.
The project is of “crucial importance for the region” and a “priority for the Trump administration,” Binnall said earlier this month in Sarajevo.
The next steps include signing implementation agreements between AAFS and the Bosniak-Croat Federation, as well as between Bosnia and Croatia.
The Bosnia-Croatia agreement is expected to be signed later this month at a summit in Dubrovnik.
The project is viewed as strategically important ahead of the European Union’s planned ban on Russian gas imports, set to take effect in 2027.
Set as preferred source
Set as preferred source
1 min read
1 min read
