May 8 (SeeNews) - Bosnia and Herzegovina should shortly begin the construction of a gas pipeline worth 80 million euro ($87.6 million), connecting its gas transmission system to Croatia's in a bid to diversity gas suppliers, local media reported.
Gas monopoly BH Gas and Croatia's gas transmission system operator Plinacro recently signed a memorandum of understanding outlining joint development projects, including the construction of the gas interconnector, news daily Vecernji List reported over the weekend.
BH Gas has said that environmental and financial studies towards the project's implementation should be completed within the next 12 months. After that, land expropriation will begin.
The 160 km pipeline, which will be financed by the European Bank for Reconstruction and Development (EBRD) and will be part of the EU's Gas Ring, will connect Bosnia's towns of Travnik and Posusje, before heading towards Croatia.
Bosnia's existing pipeline system is 40 years old.
($=0.9135 euro)