site.bta Bulgaria Welcomes Ukraine, Moldova, Slovakia to Vertical Gas Corridor Initiative

Bulgaria Friday welcomed Ukraine, Moldova and Slovakia to the Vertical Gas Corridor initiative as the participating countries renewed the memorandum of understanding in Greece. In Athens, Bulgartransgaz EAD Executive Director Vladimir Malinov said that the Ukraine, Moldova and Slovakia’s accession establishes the Vertical Gas Corridor project as a strategic route for transporting additional volumes of liquified natural gas (LNG) for the region, the Bulgartransgaz press centre said on Friday.

"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 European single 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 energy security in the wider region.

The document was signed by the executive directors of Bulgartransgaz, DESFA S.A., Gastrade S.A., ICGB AD, Transgaz S.A., FGSZ Ltd., Eustream a.s., Gas TSO of Ukraine LLC and VestМoldТransgaz S.R.L on the margins of the Central and South Eastern Europe Energy Connectivity High Level Group meeting in Athens, Greece. A meeting of the parties to the Memorandum was held in Sofia in November 2023, where the accession of Ukraine, Moldova and Slovakia was initiated.

During Friday’s event, the gas transmission network operators conferred with EU Commissioner for Energy Kadri Simson and discussed the progress on the Vertical Gas Corridor. Simson expressed her support for the initiative and the accession of new participants. "Bulgaria is strategically located along the route of the Vertical Corridor and is key to the initiative’s success. We aim to make the most of the existing infrastructure and 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 Simson.

The market test’s non-binding phase which was closed in autumn 2023 shows the market need for a significant increase in entry capacity from Greece to Bulgaria and exit capacity to Romania. During the operators' 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 Gas Corridor projects and to keep the route cost competitive.

A key factor in the increased demand is the development of the natural gas market and the growth in supply from reliable sources, including the US. The implementation of the Vertical Gas Corridor projects will allow the potential of the infrastructure to be used for hydrogen transportation in the future, the Bulgartransgaz press release reads.