Croatia is expected to build a 60-kilometre long pipeline from Split to Zagvozd as part of the project (Photo: HRT) Croatia is expected to build a 60-kilometre long pipeline from Split to Zagvozd as part of the project (Photo: HRT)

The European Union’s Directorate-General for Neighbourhood and Enlargement Negotiations has approved the project, which BH Gas, says will help Bosnia and Herzegovina diversify its sources of natural gas and reduce dependence on Russian gas.

The new gas pipeline would run from Zagvozd, in southern Croatia, to Posušje and on to central Bosnia and Mostar. BH Gas said it hoped the new supply route would be operational by 2023.

The main financier of the project is the European Bank for Reconstruction and Development, which will provide a favorable loan arrangement.

The EU has pledged 1 million euros in grants for the project. The Mott MacDonald consortium has been contracted to prepare the initial documentation for the project.

Bosnia and Herzegovina is currently completely dependent on Russian gas, which is supplied via Hungary and Serbia. The new pipeline via Zagvozd should give the country access to the EU market and the future LNG terminal on the northern Croatian Adriatic island of Krk.

Croatia is expected to build a 60-kilometre long pipeline from Split to Zagvozd as part of the project.

Source: HINA/HRT