Vedran Lakić: Bosnia and Herzegovina's gas market is open to Azerbaijan - EXCLUSIVE

Bosnia and Herzegovina offers Azerbaijan opportunities for a new gas market and energy partnership, Bosnia and Herzegovina's Minister of Energy, Mining and Industry Vedran Lakić told Report's Balkan bureau.

Official Sarajevo says the country's gas market is open to foreign suppliers and, in this context, expresses interest in cooperation with Azerbaijan.

Lakić said Bosnia and Herzegovina is currently undergoing a major energy transition and that the main projects being implemented will focus on the country's gas grid. He said opening the market to gas suppliers is very important for Bosnia and Herzegovina, adding that these projects can also be of interest to Azerbaijan.

The minister said Bosnia and Herzegovina is ready to hold discussions with Azerbaijan on the energy transition. He said Azerbaijan can pay attention to activities and prospects expected to be implemented in Bosnia and Herzegovina in the near future. He added that Azerbaijan is widely recognised for its gas potential and that opening Bosnia and Herzegovina's market to everyone is very important for his country. The market, he said, is also open to Azerbaijan.

According to him, cooperation is not limited to the gas sector. Bosnia and Herzegovina plans to invest seriously in the development of renewable energy sources in the coming years, with hydropower regarded as a particular priority.

Lakić said the construction of new hydroelectric power plants linked to other countries is very important for Bosnia and Herzegovina. He added that the country was also open to cooperation in this area with Azerbaijani investors or partners, noting that many energy projects would be launched in Bosnia and Herzegovina in the coming period.

The minister also said the main obstacles to the development of green energy projects are weak energy infrastructure and electricity grids. He said the key current need is to build energy infrastructure, while the energy grid is also one of the biggest problems. He added that these two main issues have to be resolved.

Lakić does not think financing will be a problem, as both investors and various countries want to invest in energy projects. Once Bosnia and Herzegovina has a strong energy grid, it will also be open to other markets for electricity exports, he said.

Bosnia and Herzegovina's natural gas demand in 2025 stood at about 200 million to 250 million cubic metres. Natural gas accounts for only around 3% of the country's overall energy balance. The country's energy sector has traditionally depended on coal and hydropower resources.

Bosnia and Herzegovina's gas market currently remains heavily dependent on imports and has not been sufficiently diversified for many years. Last year, about 95% of gas supplies were delivered from Russia via Serbia through the Zvornik entry point. Smaller volumes of gas were imported from neighbouring Croatia.

Serbia already buys natural gas from Azerbaijan. Under an agreement signed between the two countries, 444.6 million cubic metres of gas has been exported from Azerbaijan to Serbia over the past more than two years.