Krug 99: Southern Gas Interconnection between Energy Diversification and State Sovereignty

(Patria) - The decision to exclude BH-Gas from the project in the strategic energy sector through amendments to the law on the Southern Interconnection, and to give the role of project holder, even in the text of the law itself, to a private company, represents a serious precedent. Such a move opens a fundamental question: why is the law being changed after it has just been adopted, and not in its technical, but in its fundamental part, stated the Association of Independent Intellectuals Krug 99.

"Krug 99 supports the construction of the Southern Gas Interconnection between Bosnia and Herzegovina and Croatia in order to achieve diversification in gas supply. Last year, the Parliament of FBiH adopted the Law on the Southern Gas Interconnection, which clearly stipulated that the domestic public company BH-Gas is the investment holder. Such a legal solution is logical, an important infrastructure project remains under the control of a domestic institution. The Southern Interconnection project can be realized in cooperation with a foreign investor and without amending the existing legal solution.

The amendments to the law stipulate that the American investor AAFS Infrastructure and Energy, a newly established company with no references in this field, will lead the entire project. The question is justifiably raised whether the current model of constructing the Southern Interconnection represents a transfer of part of the energy sovereignty to an unknown partner? The amendments to the law do not define the management period of this gas pipeline, nor the method of management after the investor's departure", it was stated.

They add: "The significant expansion of the gas network, which is not foreseen in the text of the existing law, is not driven primarily by domestic energy plans, but by foreign strategic interests. When we add to this the possibility that the management of key infrastructure is taken over by a private company without clear references, the question arises: is Bosnia and Herzegovina gaining diversification of supply, or is it losing part of its energy sovereignty?

The way the project is currently being conducted raises serious dilemmas: the law is being changed to suit a company that has no clear references for such large projects, with the risk of transferring control over the infrastructure to a private entity".

"It is important to note that the EU does not support such projects and insists on its vision of the energy future of BiH and the Western Balkans. The EU does not support energy solutions that are not based on renewable energy sources. Their financing only covers projects that do not increase long-term dependence on fossil fuels. Our energy strategy must have a bold and clear vision and modern long-term solutions, including harmless production based on small, highly economical power plants and production security based on nuclear fusion. Such an energy policy would follow the EU's energy policy, which is based on clean energy and achieving the goal of climate neutrality by 2050.

Liquefied gas as an energy source is considered a transitional solution by the EU. As CBAM is gradually introduced, high-carbon production with import transport costs will face additional costs when exporting to the EU. For Bosnia and Herzegovina's industry to remain competitive, it will have to reduce emissions and invest in cleaner energy. The EU also offers a mechanism for these investments – the Growth Plan for the Western Balkans.

A particular danger exists when it comes to the state property of Bosnia and Herzegovina. Namely, under pressure justified by investments and self-imposed deadlines, the chance of using state property increases before the Parliamentary Assembly of Bosnia and Herzegovina adopts the appropriate law on state property, in accordance with the rulings of the Constitutional Court and the decisions of the High Representative.

Energy policy is, in its essence, a policy of survival in a world where power is increasingly measured by control over energy. In such circumstances, the initiative to build the Southern Gas Interconnection, in its current form, can hardly be considered unequivocally in the interest of Bosnia and Herzegovina and its citizens. Diversification of energy sources must not be an excuse for non-transparent arrangements and projects that are not in line with EU strategies. Bosnia and Herzegovina does not need a gas pipeline at any cost, especially not at the cost of losing control over its own energy and state sovereignty", say Krug 99.