Weeks of rumors and rhetoric…
Crude prices rallied on Monday…
A memorandum of understanding was signed on the construction of a gas pipeline between Bosanski Brod and Zenica earlier this month.
The best route for the projected pipeline increasingly appears to be "the Adriatic Route," which would transit Bosnia-Herzegovina on its way to Split in Croatia.
Companies interested in the Adriatic Route project include Britain’s BP and Italy's Azienda Generale Italiana Petroli (AGIP), Dnevni List reported.
According to Belgrade Professor Argam Naim, who has done a preparatory document for a feasibility study, the Adriatic Route is the best route for the pipeline and it does not matter whether the pipeline's starting point is Ploce or Neum as natural gas along with oil would be transported by tankers to the Adriatic, allowing the Balkan states to obtain LNG via maritime shipments directly from Arab states, Scandinavia, Latin America, and Indonesia. The end result would be to free the region from the hydrocarbon politics of Russia and Ukraine, whose nearly annual squabbles over pricing currently result in pipeline disruptions.
Naim said, "Envisaged is the transport of liquid natural gas by boat to a terminal to be built in the Ploce Harbor or the Neum Harbor, where the gas is stored. Natural gas is then transported to the final destination via Bosnia-Herzegovina, Croatia, and Hungary.”
By. Joao Peixe, Deputy Editor OilPrice.com
Joao is a writer for Oilprice.com