Representatives of gas transmission and system operators (TSOs) who are signatories of the Vertical Corridor Memorandum have reaffirmed their commitment to the project. Investment decisions for the ambitious Vertical Corridor, designed to enhance gas transmission capacity across several countries, will soon be made, according to Ion Sterian, CEO of Transgaz.
On September 5 in Thessaloniki, the stakeholders reviewed the reasons behind the lack of capacity bookings during recent auctions, such as the incremental capacity auction held on July 1. They also discussed the next steps required to make the Vertical Corridor operational, with an initial proposed capacity of 10 billion cubic meters of gas.
The discussions led to the planning of joint actions, including a presentation of a unified concept at the CESEC (Central and South-Eastern European Gas Connectivity) meeting in Budapest from September 18-20. This presentation aims to secure European funding for completing the gas transmission infrastructure across participating countries. The funds will be allocated according to the unified concept presented by the TSOs, with each country justifying its need for funding to the European Commission.
Sterian outlined the planned investments, which include:
- Greece: Funding to increase the Interconnector Greece-Bulgaria (IGB) capacity from 3.5 billion to 5 billion cubic meters.
- Bulgaria: Funds to rebuild 63 kilometers of pipeline, enhance the Kardam compressor station’s capacity, and improve reverse flow interconnection between Bulgaria and Greece. Additional funds will support projects between Alexandroupolis and Sidirokastro and several compressor stations.
- Romania: Funding for the BRUA 2 pipeline project and a new compressor station in the Coroi area, situated between Onesti and Medias.
Following the presentation at CESEC, the group plans to request a meeting with European Commission President Ursula von der Leyen and the new Energy Commissioner. By January 18, 2025, each country must submit its projects to the Modernization Fund. The funding decisions will be finalized by the end of March 2025, with the expectation that the Vertical Corridor project will be completed by late 2026 or early 2027.
Sterian also highlighted the importance of gas supplies from LNG terminals in Greece, Turkey, and Azerbaijan. The Alexandroupolis terminal, set to commence operations on October 1, is a key component of the project. Romania is interested in becoming a shareholder in the Alexandroupolis floating gas storage and regasification unit (FSRU), timing its involvement to maximize benefits for the country.
