Monday, June 17, 2024
HomeOil & GasNew phase of the Vertical Corridor initiative to begin in July 2024
Powered by

New phase of the Vertical Corridor initiative to begin in July 2024

Gas Transmission System Operators (TSOs) of Central and Southeast European countries presented the next phase of the Vertical Corridor initiative: the binding stage of the incremental capacity allocation between the participant countries’ gas transmission systems, which will start in July 2024.

The Vertical Corridor initiative aims to enhance the transmission of natural gas to the EU market, from Greece to Bulgaria, Romania, Hungary, Slovakia, Moldova and Ukraine and vice versa, through European natural gas and LNG transmission systems, leveraging the enhanced capabilities of the new and under development FSRUs in the area. This potential can be further extended by the use of said infrastructures for renewable gases and hydrogen.

Regarding the Greek segment of the Vertical Corridor, significant progress has been made. On 2 May, the Greek TSO DESFA announced the commencement of the binding phase of the market test to increase its capacity, potentially activating investments of up to 570 million euros.

“The energy crisis might seem over, but we are still in a very fragile environment, that demands increased availability of diversified and abundant energy routes,” stated the CEO of DESFA, Maria Rita Galli. “The complexity of these challenges cannot be dealt with by each of us alone but can only be addressed through working together. To that end, the Vertical Corridor initiative holds significant importance, as it will strengthen the resilience of our energy systems and create multiple import routes. A critical element of this initiative is the very selected projects to maximise the utilisation of our existing infrastructure and pave the way for their use for other energy carriers in the future. Following a huge collaborative effort, we have reached a very important moment in the project, where we are ready to collect the needs of the market. We invite market players to engage in this process and express their needs for the future, as it is only through the reciprocal commitment of all involved stakeholders that we can secure the success of this initiative.”

“Regional natural gas interconnectivity holds an increased significance to many countries in Central and Southeast Europe,” noted the Deputy State Secretary for Energy Security of Hungary, Csaba Marosvári. “Natural gas is an integral and reliable part of the energy mix and will remain so, as throughout the energy transition process we will still need to resolve daily challenges of our energy systems, supply energy to our households, fuel our industries, keep our business running and balance renewable energy production. Hungary, with the key role of FGSZ, has accelerated its efforts to increase interconnectivity, enable diversified energy routes and ensure security of supply. To that end, our country is committed to supporting and promoting the Vertical Corridor initiative as an example of regional coordination for strengthening interconnectivity and energy security in the area.”

The Gas TSO of Ukraine, who recently joined the initiative, noted that “thanks to the coordinated efforts and proactivity displayed by all participants, we are one year ahead of the standard procedure’s schedule.”

“I hope that our coordination will remain this effective and together we shall implement the Vertical Corridor project for the benefit of Europe’s energy security,” GTSOU’s General Director Dmytro Lyppa noted during his speech.

At the beginning of May, also Bulgaria’s TSO Bulgartransgaz launched the binding phase of the incremental capacity procedure, together with the operators of Greece, Romania as well as the Interconnector Greece-Bulgaria (ICGB).

“Thanks to the well-developed gas transmission infrastructure in the region and in Bulgaria, in particular, local markets are increasingly attractive for new suppliers,” said the Executive Director of Bulgartransgaz, Kiril Ravnachki. In his words, liquefied natural gas supplies to the European Union reach almost 50 per cent of imports and the tendency for the share is to increase.

“Following the expiration of the agreement on natural gas transport from Russia via Ukraine in early 2025, the Vertical Gas Corridor infrastructure will be vital for the supply of liquefied natural gas from the south to the north,” Mr Ravnachki added.

Sign up for our newsletters

    Monthly newsletter – Delivering the most important energy stories of the month selected by our Editor-in-chief
    Weekly Oil&Gas roundup - All major news about the oil and gas industry, LNG developments, the upscaling of new gases and related EU regulations arriving in your mailbox every Monday.
    Weekly Renewables&Climate roundup - All major news about investments in renewable energy sources, environment protection, green hydrogen and new innovative ways to tackle the climate crisis arriving in your mailbox every Tuesday.

    Most Popular