Bosnia and Herzegovina has announced that it will construct a new cross-border gas pipeline with Croatia, which will be led by the United States. The tiny European nation has been entirely reliant on Russian gas imports to meet demand; however, following the latest sanctions on Russia and its energy companies, the United States has stepped in to develop the new South Interconnection cross-border pipeline, as it claims that any gas purchases made only serve as a funding mechanism for Russia’s ongoing war in Ukraine.
Russia’s ongoing “special military” operation in Ukraine has devastated the global markets
Once it became abundantly clear that Russia had no intentions of finding a peaceful solution to end the war in Ukraine, especially following a summit between the US and Russia in Alaska, a new wave of sanctions was imposed on Russia and its energy companies, as the US claims that any gas purchases made in Europe only fuel the war in Ukraine.
Bosnia and Herzegovina has historically relied on Russia for 100% of its gas supply. To bring this dangerous reliance to an end, the nation is stepping up its game and, through a partnership with Croatia and the US, is set to construct the new South Interconnection cross-border gas pipeline. The Federation of Bosnia and Herzegovina, one of the autonomous entities that governs the nation, has welcomed the plan to bring on board an American company to oversee the construction of the new pipeline.
“This week, I met with leaders from the Federation of BiH governing coalition. My message was simple: Now is the time to end political gridlock and build the Southern Interconnection. And for the first time in many years, we found consensus on a path forward. Together we agreed, in principle, that an American company would be best positioned to build, manage, and operate the pipeline in the interests of all residents of the Federation. We will have intensive discussions over the next weeks to flesh out the details, and with the intention to have construction begin next year.” – The charge d’affaires of the United States (U.S.) Embassy in Bosnia and Herzegovina (BiH), John Ginkel
The end of the dominance of Russian gas and oil is upon us
The new pipeline will run 74 km on the Croatian side and flow through 169 km of Bosnia and Herzegovina. The pipeline is essential as once the European sanctions take hold, Russia will no longer be able to transit gas through the existing platforms it uses to supply gas to Bosnia and Herzegovina. The new Couth Interconnection pipeline will allow the nation to develop a sense of energy security and independence.
U.S. Energy Secretary Chris Wright wrote recently on social media that the US is taking the lead and providing its know-how and expertise to deliver on the project that will flow gas through Croatia to Bosnia and Herzegovina. The United States is the number one gas producer by capacity and boasts one of the most substantial pipeline portfolios anywhere in the world.
With global pipeline construction set to surge, the market is changing
A new report confirms the expectation that the global pipeline sector is set to surge over the coming years, marking a new era of pipeline construction that will effectively kill off the dominance of Russia in the global gas and oil market. Providing Bosnia and Herzegovina with the opportunity to develop its own gas pipeline will be crucial to the nation’s developing energy security in a world that has become exceedingly challenging for nations that do not have the purchasing power for gas and oil that other nations do. The global energy market is shifting away from Russia towards the US.
