Srbijagas and the Gas-Res companies signed an agreement in Banja Luka on Tuesday to build a gas interconnection between Serbia and the Republika Srpska in Bosnia-Herzegovina.

The interconnection will link the gas pipeline system in Bosnia-Herzegovina to Serbia and the Balkan Stream pipeline. The interconnection will go from Serbia into Bosnia-Herzegovina via Bijeljina, Banja Luka, Prijedor and Novigrad, the Serbian state-owned Srbijagas company said, adding that the new pipeline will be 90 kilometers long in Serbia and 320 kilometers in the Republika Srpska with a planned capacity of 1.2 billion cubic meters of natural gas a year.

The agreement was signed by Srbijagas CEO Dusan Bajatovic and Gas-Res CEO Djuro Glamocic with Republika Srpska Energy and Mining Minister Petar Djokic Present. Bajatovic (Socialist Party of Serbia – SPS) and the management of Srbijagas have been fiercely criticized by Serbian Mining and Energy Minister Zorana Mihajlovic (Serbian Progressive Party – SNS) who was not present at the signing.