Vladimir Malinov: With the accession of Ukraine, Moldova and Slovakia, the Vertical Corridor is established as a strategic route for the transfer of additional volumes of LNG
"With the accession of Ukraine, Moldova and Slovakia, the Vertical Gas Corridor project is established as a strategic route for the transfer of additional volumes of liquefied natural gas for the region." This was said by the executive director of Bulgartransgaz EAD Vladimir Malinov during the renewal of the Memorandum on the initiative. "The upgrading of the existing infrastructure and regional interconnections, as well as the commissioning of the liquefied natural gas terminal in Alexandroupolis, are key to achieving the goals of the European single market," he added. The realization of a Vertical Corridor for two-way transfer of additional quantities of gas 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 in Athens, Greece within the framework of the meeting of the High Level Group on Interconnection in Central and South Eastern Europe (CESEC). The new Memorandum of Understanding for the "Vertical Corridor" was signed by the executive directors of "Bulgartransgaz" EAD, "DESFA" S.A., "Gastrade" S.A., "ICGB" AD, "Transgaz" S.A., "FGSZ" Ltd., Eustream” a.s., “Gas TSO of Ukraine” LLC and “VestMoldTransgaz” S.R.L. We remind you that in November 2023, at the invitation of Bulgartransgaz, a meeting of the parties to the memorandum was held in Sofia, during which the accession of Ukraine, Moldova and Slovakia was also initiated.
During today's event, gas transmission network operators met with EU Energy Commissioner Kadri Simson and discussed progress on the Vertical Corridor. She expressed support for the initiative and the joining of the new participants. "Bulgaria is strategically located along the route of the Vertical Corridor and is the key to the success of the initiative. We strive to make maximum use of the existing infrastructure and with targeted investments to increase capacities to ensure the necessary additional flows of natural gas to Hungary, Slovakia, Ukraine and Moldova," Malinov said during the meeting with Commissioner Simson.
The non-binding phase of the market test, which ended in the fall of 2023, showed the market's need for a significant increase in input capacity from Greece to Bulgaria and output to Romania. During the operators' meeting in Athens, details of the specific project proposals for increasing the transmission capacity at the interconnection points were discussed. For the accelerated implementation of the projects along the Vertical Corridor and to preserve the price competitiveness of the route, significant financial support is needed from the countries and the European Union.
A major factor in the increased demand is the development of the natural gas market and the growth of supplies from reliable sources, including the United States. The implementation of the projects within the Vertical Corridor will allow the potential of the infrastructure to be used for hydrogen transport in the future.