The Vertical Gas Corridor, linking Greece with Ukraine, has reached a commercial milestone following annual capacity auctions for the 2026/2027 gas year. Bookings covered more than 45% of the available capacity across the next four gas years. The corridor’s latest auction results were conducted under a revised commercial framework.
The updated framework introduced lower transmission tariffs and additional discounts across selected sections of the route. DESFA said the changes improved the competitiveness of gas transportation toward Ukraine. Market participants also indicated that further incentives may be needed to stimulate additional demand and secure broader long-term commitments.
Revised tariffs and discounts shape corridor competitiveness
The first auctions under the revised commercial framework applied lower transmission tariffs and added discounts on specific parts of the Vertical Gas Corridor. The outcome supported improved competitiveness for shipments toward Ukraine. The corridor was described as the fourth-most cost-effective import route into the Ukrainian market based on these auction results.
Market participants noted that while the tariff and discount adjustments improved transport economics, more measures could be required to expand demand. This includes securing wider long-term commitments beyond initial reservations. European market rules are also under review for potential further changes.
DESFA reports strongest demand at Sidirokastro
Greek gas transmission system operator DESFA said the auction outcome aligns with Greece’s goal of becoming a regional natural gas hub. DESFA reported that demand was strongest at the Sidirokastro interconnection point on the Greece-Bulgaria border. Sidirokastro has become a key gateway for northbound gas flows.
Around 46% of available export capacity for the 2026/2027–2029/2030 gas years was booked at Sidirokastro. Approximately 26% of capacity was reserved for the 2030/2031 gas year. Long-term transport rights were also secured into future periods, with reservations extending as far as 2040/2041.
Company allocations include Atlantic SEE LNG Trade and Metlen
Several Greek energy companies participated in the capacity allocations at Sidirokastro. Atlantic SEE LNG Trade, a joint venture between Aktor Group and DEPA Trade, secured around 13,000 MWh per day, equivalent to approximately 4.7 TWh annually. Metlen booked an additional 20,000 MWh per day.
The total export capacity offered at Sidirokastro reached 100 GWh per day, with auction demand broadly matching market expectations . The booking activity was linked to increased interest from Greek energy companies in using LNG supplies from Greece for markets in Southeast Europe, Eastern Europe and Ukraine.
Long-term flexibility discussed by transmission operators and EU institutions
European transmission system operators and the European Commission continue to assess options to make long-term capacity reservations more flexible. Additional adjustments to market rules are being considered to attract more participants and increase liquidity. The aim is to unlock further commercial potential along the Greece-Ukraine gas corridor .
The latest auction results indicate that the Vertical Gas Corridor is progressing from a strategic concept toward a commercially active infrastructure route. The corridor’s role is described as strengthening Greece’s position as a gateway for LNG flows while improving supply flexibility for European markets facing ongoing energy security challenges.
