The natural gas system operators of Bulgaria (BULGARTRANSGAZ and ICGB), Romania (TRANSGAZ), Hungary (FGSZ), Slovakia (EUSTREAM), Moldova (VMTG), Ukraine (GTSOU) and Greece (DESFA and Gastrade) have conducted a binding market test to gather market interest in the creation of the “Vertical Corridor”, an improved pipeline system using existing infrastructure, which will start in Greece and reach Central Europe and Ukraine, transporting up to 10 billion cubic metres (bcm) of natural gas.
The plan is a “product” of the overall European strategy to abandon Russian gas, but it “clung” to users’ reservations about making a long-term commitment in an environment of intense liquidity and, at the same time, in a market that has been flooded in recent months by Russian gas arriving in the Balkans via Turkey, at a price 8-10 euros cheaper than the European reference price, the Dutch TTF.
According to competent sources who spoke to “Naftemporiki”, the administrators discussed the issue in a teleconference, confirming their intention to continue efforts to create the “Vertical Corridor”.
Meeting in Athens in September
Decisions on the “next steps” will be taken at a new meeting in September, which is expected to take place in Athens. The critical issue concerns financing, where alternative sources will need to be sought, since the market, as the results of the market test show, is not willing to contribute.
In this case, according to the same sources, the administrators’ “eyes” are on Brussels, but also on the US, as both officially declared their support for the project last year.
Of course, it remains to be seen whether they intend to get involved financially. In any case, the aim of the next meeting, according to sources, is to agree on a “common action plan for all” and which will therefore give continuity to the project that is threatened with a “premature death”.