REVEALING The Southern Interconnection as a Croatian Political Interest is a Cover for Abraham Group's Entry into the Project!

Written for Patria by Almir Bečarević

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Recently, in a text about the security of gas supply for the "Croatian population" in BiH via the Southern Gas Interconnection, I pointed out the HNS Declaration, which defined and shaped this interest into a political document. This interest is linked to the gas transport branch for Mostar, which would supply natural gas to Aluminij Mostar. 

And there would be nothing strange about it if new "players" were not now entering the whole story, and some old ones were changing positions regarding the Southern Interconnection project. 

Old Players 

Official Zagreb has "signaled" to the Croatian gas transmission company Plinacro not to extend the Memorandum of Understanding on the construction of the Southern Gas Interconnection, which renders everything that was done between Plinacro and BH-Gas regarding the Southern Interconnection void. The Memorandum was the basic document by which work on this project began 17 years ago (in 2006). 

The reason for this "signal" is the formation of the company "Južna plinska interkonekcija" owned by cantons in the FBiH with a Croatian majority.

The new player is the company Južna plinska interkonekcija, which is supposed to take the place of BH-Gas and realize this project of importance for the Croatian population. 

The Latest Player

In 2011, BH-Gas signed a Memorandum of Understanding with the company Aluminij Mostar on the gasification of Aluminij, which would include the construction of a gas-fired power plant within the factory premises. Through the lease agreement for part of Aluminij, Abraham Group shows interest in this project and is now joining the Southern Gas Interconnection project. 

Abraham Group's aspiration is no longer just the construction of a gas-fired power plant, but also the construction of a gas pipeline to Mostar, as well as the construction of a 60 MW solar park. This is now a completely new plan for this project, via the power plant, which may seem unrelated to the uninformed.

The construction of the new gas pipeline to Mostar would be financed with capital from Israel, which would enable gas from Israel to be delivered to the LNG terminal in KRK. The gas would be used for the gas-fired power plant within Aluminij, and this power plant would serve to stabilize the power system in FBiH. This stabilization would serve to balance the solar park of Aluminij (and others) and Elektroprivreda HZHB, given that the latter relies on hydropower potential and in the future on wind and solar. 

For this idea, they also need Plinacro (the gas pipeline to BiH), and therefore it was suggested that Plinacro suspend all activities with BH-Gas, and that the new company Južna plinska interkonekcija come onto the scene as a facade for Abraham Group. 

Looking at this scenario, it is clear why the company Južna plinska interkonekcija was formed and why the gas pipeline was declared solely of interest to the Croatian population. At the same time, Israel has found significant gas reserves, Abraham Group is connected to these sources, and the whole story opens up with increased capacity at the KRK terminal. 

Looking at the scenario, it is crystal clear who will be left high and dry in the story of the Nova istočna interkonekcija and Južna plinska interkonekcija gas pipelines. This "fish" should be the island of Palestine, and through energy, it should depend on the East and the South. 

Finally, while we await the session of the Council of Ministers of Bosnia and Herzegovina, with an agenda that will "convince" us that all BiH laws have been respected and that the Nova istočna interkonekcija is our solution to the problem, and while we await confirmation from the south that the Južna plinska is our solution to the problem, but exclusively with new players, until then, hands will be counted in the limited territory called Palestine, year after year. 

At this link (https://mtabraham.com/gas/) on the Abraham Group website, their interest in the Southern Gas Interconnection is publicly announced.

"In order to ensure the supply of natural gas for the needs of the Combined Cycle Cogeneration Gas Power Plant, M.T. Abraham Group will execute the construction of a connecting gas pipeline to the southern interconnection Croatia–Bosnia and Herzegovina branch to Mostar. „The combined cycle cogeneration gas power plant will be used for the production of electricity and heat and will contribute to the greater flexibility, stability and reliability of the electricity system of Bosnia and Herzegovina.“

I would ask all "responsible persons" who wish to deny anything in this text to first take certain steps to prove that nothing stated is true:

1. That Plinacro signs the extension of the Memorandum with BH-Gas for the construction of the Southern Interconnection;

2. Issuance of urban planning consent to BH-Gas for the construction of the Southern Interconnection, which has been blocked for over two years at the Federal Ministry of Spatial Planning

3.  That Abraham Group takes the place of Aluminij and signs a Memorandum of Intent with BH-Gas for the construction of a gas power plant;

4.  That the newly formed company Južna plinska interkonekcija be dissolved, as there is no need for it since BH-Gas will build everything as defined by the Decision of the FBiH Government and the Law on the Southern Gas Interconnection, the adoption of which is blocked in the House of Peoples of the FBiH Parliament;

5. That Abraham Group and BH-Gas lease capacity at the KRK LNG terminal, and in that scenario, purchase gas from the most favorable country.

The visit of the Chairperson of the Council of Ministers, Borjana Krišto, to Zagreb is the right opportunity to give new momentum to the project of constructing the Southern Gas Interconnection with BH-Gas and Plinacro as project holders.