Sarajevo, 20 January 2026, dtt-net.com – A USA company has expressed interest to construct gas-fired power plants in the Bosniak-Croat entity of Bosnia and Herzegovina (BiH), as part of wider plans to construct and manage an interconnector to Croatia for supplies of American LNG to the entity, according to the government of the entity.
The government of Federation of BiH (FBiH) in its today’s session said it has a letter of Intent from the AAFS Infrastructure and Energy LLC and agreed to continue negotiations on the interconnector and gas-fired power plants, but also about its interest on modernisation of two airports in the country, capital Sarajevo and Mostar town, respectively.
“With the adopted conclusion, the Government of the Federation of BiH supported the continuation of the institutional dialogue and consideration of the possibility of cooperation in the development of projects from the Letter of Intent, including the construction of a new gas interconnection – ‘Southern Interconnection of Bosnia and Herzegovina and the Republic of Croatia’, and the construction of gas power plants with accompanying gas pipelines, including the expansion of the Kladanj-Tuzla gas pipeline and the modernization of international airports”, entity’s government said in a press release.
It remains unknown at the moment the quantity of LNG supplies per year to the entity and the number and electricity power production of eyed gas-fired power plants by the company.
FBiH authorities will need to change a law on interconnector to oust existing local BH-Gas company from the project and include the American one.
The deal reached between entity’s governing parties and USA authorities to grant concession to the USA company for construction and manage the interconnector for a period of 30 years, comes after years of dispute between Bosniak and Croat main party HDZ-BiH, which has insisted creating a new public company and exclude BH-Gas from it.
BiH and Croatia will have also to conclude an agreement over interconnector project, which will supply Bosniak-Croat entity with LNG from Croatian Krk Terminal.
The Government of the Federation of Bosnia and Herzegovina has stated that the implementation of the Gas Pipeline Construction Project “Southern Interconnection Bosnia and Herzegovina and the Republic of Croatia” can be considered within the framework of the Law on Concessions of the Federation of Bosnia and Herzegovina, including the possibility of submitting a self-initiated bid. For other infrastructure projects from the Letter of Intent, other implementation models can be considered, which will depend on further analysis and the applicable legal and regulatory frameworks.
