“The accession of Ukraine, Moldova and Slovakia establishes the Vertical Gas Corridor project as a strategic route for transporting additional LNG volumes for the region,” said the Executive Director of Bulgartransgaz EAD, Vladimir Malinov during the renewal of the Memorandum under the initiative. “Enhancing the existing infrastructure and regional interconnections, as well as the commissioning of the Alexandroupolis LNG terminal, are key to achieving the objectives of the single European market,” he added. The implementation of a Vertical Corridor for bi-directional transport of additional gas quantities from South to North, through the gas transmission networks of Greece, Bulgaria, Romania, Hungary, Slovakia, Ukraine and Moldova, will contribute to ensuring the energy security in the wider region.
The document was signed in Athens, Greece during the meeting of the CESEC High Level Group. The new Memorandum of Understanding for the Vertical Corridor was signed by the CEOs of Bulgartransgaz EAD, DESFA S.A., Gastrade S.A., ICGB AD, FGSZ Ltd., Transgaz S.A., Eustream a.s., Gas TSO of Ukraine LLC and VestMoldTransgaz S.R.L. We recall that in November 2023 in Sofia, at the invitation of Bulgartransgaz, a meeting of the parties to the Memorandum was held, within the framework of which the accession of Ukraine, Moldova and Slovakia was initiated.
In the framework of today's event, the TSOs met with the European Commissioner for Energy Kadri Simson and discussed the progress on the Vertical Corridor. She expressed her support for the initiative and the accession of the new participants. “Bulgaria is strategically located along the route of the Vertical Corridor and is the key to the success of the initiative. We aim to make the most of the existing infrastructure and to increase capacities with targeted investments in order to secure the necessary additional gas flows to Hungary, Slovakia, Ukraine and Moldova,” Malinov said during the meeting with Commissioner Simpson.
The non-binding phase of the market test which was closed in autumn 2023, shows the market need for a significant increase in the entry capacity from Greece to Bulgaria and the exit capacity to Romania. During the TSOs’ meeting in Athens, details of specific project proposals to increase the transport capacity at the interconnection points were discussed. Significant financial support from the countries and the European Union is needed to accelerate the implementation of the Vertical Corridor projects and to keep the route cost competitive.
The increased demand is due to the development of the natural gas market and the growth in the supply from reliable sources, including the US. The implementation of the projects within the Vertical Corridor will allow to use the potential of the infrastructure for hydrogen transportation in the future.
