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Reading: RS Government: More than a Billion BAM for the Construction of the Gas Pipeline
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Sarajevo Times > Blog > POLITICS > RS Government: More than a Billion BAM for the Construction of the Gas Pipeline
POLITICSWORLD NEWS

RS Government: More than a Billion BAM for the Construction of the Gas Pipeline

Published April 1, 2026
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©️Srna
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The Government of the Republika Srpska has agreed to provide 1,029,477,150 BAM from the budget of the Republika Srpska for the implementation of the project to build the main gas pipeline Šepak – Novi Grad.

This amount does not include the costs of resolving property relations that will be subsequently determined during the expropriation procedure, according to the information on activities for the implementation of the project to build the main gas pipeline, which was adopted today by the Government of the Republika Srpska.

The Ministry of Finance and the Ministry of Energy and Mining are responsible for the implementation of the conclusion, and “Sarajevo-gas” East Sarajevo is responsible for the implementation of the project, in accordance with regulations, the Government’s Public Relations Bureau announced.

The project to build the main gas pipeline Šepak – Novi Grad consists of three phases, the first of which includes the construction of the primary main gas pipeline Šepak-Banja Luka.

The second phase includes the construction of connecting gas pipelines to the cities and municipalities along the route, i.e. the planned gasification of 18 local communities along the route.

The third phase includes the construction of the main gas pipeline Banja Luka – Novi Grad.

The planned length of the bidirectional gas pipeline route is about 500 kilometers.

The Government emphasizes that the construction of the gas pipeline with the accompanying overhead infrastructure is a capital investment and one of the largest in this part of the Republika Srpska.

Looking at the project in a broader context, the sale of natural gas as an environmentally friendly energy source will have a positive impact on reducing electricity consumption, and thus opens up the possibility of selling excess electricity at much higher prices than those paid by consumers.

The construction of the main gas pipeline and the gasification of municipalities will create conditions for the development of industrial zones, which will provide the possibility of opening production facilities that will use natural gas for technological purposes, and above all, enable the employment of qualified labor.

The use of natural gas for heating purposes reduces the level of harmful gas emissions and environmental protection.

The implementation of this project will provide a new primary energy source, which will additionally enable the optimization of the choice of the most economical form of primary energy use for households and industrial consumers in the northwestern part of the Republika Srpska, Srna writes.

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