Annual booking test for upgraded Vertical Gas Corridor
The first annual capacity auction under the upgraded Vertical Gas Corridor is scheduled for 6 July, with Greece’s gas transmission operator DESFA and market participants expecting strong demand after reductions in transportation fees. The auction is designed to provide a signal of commercial interest in the project.
The tender will offer annual gas transport capacity at the Sidirokastro interconnection point between Greece and Bulgaria. Capacity is tied to deliveries starting in October, marking the beginning of the new European gas year.
Capacity offered, expected booking levels and contract mix
DESFA said more than 30% of the nearly 100 GWh of available capacity could be booked in the first round. After an estimated 50% reduction in transit fees along the route, market estimates link a booking rate above 30% to annual volumes exceeding 1 billion cubic meters.
Total flows are expected to be higher overall because a significant share of gas is likely to continue moving through short-term contracts alongside annual bookings. This is expected to affect how volumes develop during the new gas year.
Regional demand focus and fee changes on the Romanian section
Market interest is expected primarily from buyers in Bulgaria, Romania, and Hungary. Ukraine is not currently seen as a major destination for corridor volumes.
Further planned reductions in fees on the Romanian section are expected to improve competitiveness of the route and support regional utilization. The changes are part of the broader fee adjustments referenced by DESFA and participants ahead of the auction.
LNG-linked throughput considerations and corridor expansion schedule
Attention also remains on Venture Global, which controls around 25% of regasification capacity at the Alexandroupoli LNG terminal. Any decision by the US LNG supplier to channel cargoes through the corridor could increase throughput and improve long-term utilization rates.
Infrastructure expansion is continuing alongside the auction process. Transport capacity between Greece and Bulgaria is set to rise from 2.4 to 3.1 billion cubic meters per year starting 1 July, with further expansion to 3.6 billion cubic meters per year planned for the near future.
Winter outlook shaped by US LNG competition for spot cargoes
Despite expectations ahead of the winter season, uncertainty remains due to intensifying competition between European and Asian buyers for US LNG cargoes. This competition continues to support elevated spot gas prices across global markets.
The auction results are therefore expected to be assessed against both corridor booking dynamics and broader LNG market conditions affecting regional gas supply patterns.
