News in English     | 22.10.2020. 20:38 |

Official start of the campaign on the Southern Gas Interconnection

FENA Vernera Jakupović

SARAJEVO, October 22 (FENA) - The campaign on informing the public about the "Southern Interconnection" gas pipeline project has officially started today in Sarajevo. The project will enable a secure gas supply in Bosnia and Herzegovina.

The project, worth a total of 196m KM, envisions the construction of a 180km pipeline, 160km of which will be in Bosnia and Herzegovina. It will connect the current BiH transport pipeline with the Croatian gas pipeline system on the Zagvozd-Imotski-Posušje-Novi Travnik with a branch for Mostar. It will pass through West Herzegovina and Canton 10, Herzegovina-Neretva and Central Bosnia Canton, where it should be connected to the current system.

The Parliament of the Federation of Bosnia and Herzegovina and the Government of FBiH recognized this project as one of the most important strategic projects for the Federation, which for the first time in more than four decades will provide security of supply in BiH and new natural gas sources.

The beginning of the campaign of informing the public about a significant project has been made official at a special ceremony held in the garden of the National Museum in Sarajevo, in compliance with hygienic and epidemiological measures.

US Ambassador to BiH Eric Nelson, Prime Minister of the Federation of BiH Fadil Novalić, FBiH Minister of Energy, Mining and Industry Nermin Džindić and Director of the BH-Gas Company Jasmin Salkić addressed the public.

The US Ambassador assessed the project as an important step towards Bosnia and Herzegovina's self-sustainability.

"USAID used to invest a lot in Bosnia and Herzegovina, and now the investments are much smaller, but they are very important because they provide Bosnia and Herzegovina with a level of energy security," Nelson said about USAID providing significant support in the implementation of this project.

The information campaign on the future gas pipeline is being launched in order to give citizens an insight into the importance of the Southern Interconnection project, which will connect Bosnia and Herzegovina with the Croatian system, from Travnik onwards, Nelson informed. USAID's support is, among other things, in the segment of accelerating the process of issuing the necessary permits.

According to Ambassador Nelson, the project is important because it will provide Bosnia and Herzegovina with a diversified gas supply and access to the market price, which will prevent monopolistic behavior in this area. It will also enable Bosnia and Herzegovina to act in accordance with its obligations under the Energy Community Treaty and will be of great importance for the protection of the environment.

“This project is important for BiH because connecting to the Croatian gas pipeline network will enable a diversified source of natural gas supply, increase the security of supply and improve the harmonization of BiH with the obligations of the EU Energy Community. The security of supply and diversification of sources make the country more independent. And not only that, the availability and increased use of natural gas will have positive impacts on the environment as well,” Nelson said.

Speaking about the need to reform the energy sector, the US Ambassador called on all decision-makers in BiH to focus on passing much-needed laws. These include the state law on electricity and natural gas, the FBiH law on natural gas, electricity and environmental protection, and important processes, such as the unbundling of distribution system operators in the electricity sector.

“I congratulate the FBiH Government on today's adoption of the draft law on Southern Interconnection and the FBiH Ministry of Energy on taking positive steps to draft a law on natural gas of the Federation of BiH, with the support of USAID. I hope that this cooperation can serve as an example for other similar processes,” said Nelson.

He expressed hope that decision-makers in BiH will make efforts to reform the energy sector, which includes the adoption of these laws, and welcomed the efforts of the FBiH Ministry of Energy, Mining and Industry, which worked with USAID to draft a law on natural gas.

“Consumers and citizens pay the price of the lack of a functional, diverse and secure energy sector,” concluded the Ambassador of the United States of America.

During his address, the Prime Minister of the Federation of BiH, Fadil Novalić, congratulated the company BH-Gas for its dedicated engagement in this project.

He also thanked Ambassador Nelson for the assistance provided by the United States in BiH for many years and his persistent orientation for the development of the BiH energy sector.

Prime Minister Novalić also emphasized the importance of the Southern Interconnection project for the security of natural gas supply to citizens and the economy and called this positive story a real refreshment in the current COVID-19 pandemic.

Novalić thanked USAID for financing the Environmental Impact Study of the Southern Interconnection project through the European Bank for Reconstruction and Development, as well as the USAID Energy Assistance Project, which provided technical assistance in drafting the Southern Interconnection Law. He also thanked the European Commission for financing the preliminary design of this gas pipeline.

“I am especially glad to inform you that the Government of the Federation of BiH at today's session adopted the draft law and forwarded it to the parliamentary procedure,” said Novalić and added that the Federation of BiH intends to work intensively on amendments to the set of laws in the field of energy, which has already begun the Ministry of Energy, Mining and Industry.

In his address, FBiH Minister of Energy, Mining and Industry Nermin Džindić emphasized that the draft law on Southern Interconnection was prepared as soon as the preconditions were created after the initial justified delay due to the outbreak of the COVID-19 pandemic.

The law will remove barriers to the construction of this important pipeline with the help of several partners, including USAID.

Director of BH-Gas Jasmin Salkić reminded that the FBiH Government declared the Southern Interconnection a strategically important project in 2017 and emphasized, among other things, that it is very important that Bosnia and Herzegovina will get new gas sources.

(FENA) A. B.

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