Interconnection of Natural Gas Networks, Diversification of Gas Supply and Improvement of Security of Supply in Southeast Europe (Bosnia and Herzegovina)

The objective of this project was to promote investment in the extension of natural gas network systems and international pipeline interconnections. Furthermore, it was intended to lead to investment in an environmentally clean source of energy, contribute to promoting economic and financial cooperation among countries in the region and contribute to political and social stability, as well as economic and employment growth. Another aspect of this project was to explore the possibilities of interconnecting the various natural gas markets in the region and diversifying the sources of supply.

Since most of the gas markets in the region were relatively small and brining in new suppliers required substantial investment and considerable gas market potential, this project was conducted on a multilateral basis within the region. Regarding the development of individual projects, the Project Group had concluded that its urgent initial focus was on projects which would ensure the restoration and security of the supply of natural gas to Bosnia and Herzegovina for the 1997/1998 winter. This was done via the existing supply route as well as for the next 2-4 years via alternative supplies routes consisting of cross border transit projects and grid interconnections to be developed within a separate project.