Bosnia’s BH Gas, Croatia’s Plinacro To Agree on Gas Network Projects by Year's End

The projects include the construction of a primary gas network in Bosnia’s northwesternmost canton of Una-Sana by BH Gas and the building of a branch point from the Croatian gas transport system to the border with Bosnia by Plinacro, BH Gas said in a statement

The companies plan to sigh an investment contract on the projects at the beginning of 2011 and to build the two systems in the 2011-2012 period.

The statement was issued after a meeting between the two firms on Wednesday. They also held talks on the need to speed up the project for the construction of the Bosanski Brod-Zenica gas pipeline, which will connect central Bosnia with the border with Croatia in the north.

Bosnia said it has already completed a feasibility study on the Brod-Zenica pipeline and has the support of the European Bank for Reconstruction and Development for the project.

BH Gas and Plinacro also discussed plans for gasification of Bosnian cantons Hercegovina-Neretva, Zapadnohercegovacki and Livanjski, all of which lie on the country's southwestern border with Croatia.

Bosnia, with an average annual gas consumption of some 340 million cu m, currently gets all of its natural gas supplies from Russia in a single pipeline coming from its eastern neighbour Serbia near the town of Zvornik.

In June, BH Gas signed a framework agreement on natural gas supplies with Germany's E.ON Ruhrgas, which will help the Balkan state diminish its dependence on Russian gas.