Bosnia and Herzegovina still dependent on Gazprom

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Bosnia and Herzegovina still dependent on Gazprom

Bosnia and Herzegovina BiH has about twenty days left to sign a new gas supply contract with the Russian company Gazprom. The company operates with two entity companies in charge of delivering gas through the Turkish Stream.

At the beginning of 2023, i.e. On January 1st, contracts for the purchase of gas expire, and companies in the entities of Republika Srpska RS and the Federation of BiH FBiH still don't know whether they will buy natural gas at the old or new price.

Gazprom raised prices for the last time in early October. The price for Energoinvest, a company that supplies gas for the FBiH, increased by 9.7%, and Gas-res, a company in the RS, by 5.04%.

BiH is completely dependent on the import of gas from Russia, which arrives in the country via the Turkish Stream gas pipeline.

What are the expectations of an entity company?

The companies that importing natural gas to BiH expect similar or slightly lower prices for end users from the beginning of next year.

Energoinvest claims that the quantities contracted for the year are sufficient for the needs of all consumers in the FBiH that are connected to the gas system. Gas-res explained that it is possible for gas to become cheaper for users in RS, but they will know more when they sign a contract with Gazprom.

The plan for the New Eastern Interconnection is to connect Bijeljina to the gas network of Serbia, which would go from Bijeljina northeast to Banja Luka and Novi Grad northwest of BiH. It would open another way for Russian gas to enter BiH via Turkish Stream Gas-res, saying they expect no obstacles to the realization of this project at the BiH level and that the Council of Ministers will support it.

The construction of the Southern Interconnection would connect BiH to Croatia, and thus to the European gas network. The gas pipeline would go from Croatia, through western Herzegovina to Novi Travnik in central BiH.

The United States and the European Union supported the project as a good opportunity for diversification, strengthening the energy sector and ensuring energy security, according to BiH Radio Slobodna Evropa.