The next step has been taken for the expansion of the Vertical Corridor towards the Western Balkans.
Today in Thessaloniki, the natural gas transmission system operators of the region signed a memorandum of understanding (MoU) for the inclusion of Serbia and North Macedonia in the corridor.
The MoU was signed on the sidelines of the Southeast Europe Energy Forum, organized by the Hellenic-American Chamber of Commerce and the Hellenic Association for Energy Economics.
The Greek DESFA and the participating companies formally welcomed NOMAGAS of North Macedonia and Transportgas Serbia to the initiative.
A new energy landscape
Through this new development, the Vertical Corridor is no longer just about the route from Greece to Ukraine, Moldova, and Slovakia. A second axis is being created that will transfer liquefied natural gas (LNG) from the USA using existing and future terminals in Greece to the Western Balkans.
In order for that to happen, two significant new infrastructure projects need to be completed. The first is the gas interconnector between Greece and North Macedonia with an annual capacity of 1 billion cubic meters, which is currently under construction.
The second is the similar connector between North Macedonia and Serbia, with 1.5 billion cubic meters.
Moreover, various administrative and regulatory work is in progress to allow for the transmission and trading of gas from this new source.
Sferruzza: The goal is to provide access to gas under competitive terms and in due time
The head of Greek operator DESFA, Maria Sferruzza, said that this deal allows for the utilization of every possible route in the wider Balkans. The goal is to provide access to gas under competitive terms and in due time.
During the next 90 days, a more detailed picture will emerge about the routes and a realistic timeframe, she added.
An auction is planned this November for covering gas needs during the period 2027-2028.
Connection between North Macedonia and Serbia ready by 2028
Regarding the gas interconnector with Greece, most of the administrative work is finished and the pipes are ready for installation, according to the minister of Energy of North Macedonia, Sanja Božinovska.
“We have 68 kilometers to complete and we are progressing on time. Next June is the expected date when it should be finished. Last week we signed the contract for the connection with Serbia, which is only 23 kilometers in length. In 2028, everything will be ready from Greece to Serbia,” Bozinovska highlighted.
Bulgaria to upgrade gas storage
Bulgaria is close to completing investments that will almost double the exit capacity towards Romania, said minister of Energy, Iva Petrova.
By the end of this year there will be a full completion of an additional set of investments that will increase the entry capacity from Greece to Bulgaria, and also provide 16% additional capacity towards North Macedonia.
“Another key asset that we are having in our grid is actually the gas storage. We have a project for the increase of capacity, which will add flexibility,” she added.
Romania to build new compressor stations
Romania doesn’t need much in terms of investment to reach the goals in regard to South-North flow, since its own gas network can already handle increased volumes, said Istvan-Lorant Antal, Senator and President of the Committee on Energy, Energy Infrastructure and Mineral Resources of the Parliament of Romania.
What Romania needs is new compressor stations and to increase the interconnection capacity with Hungary from its current 1.75 billion cubic meters, up to 4.4 billion per year, he mentioned.
Present at the MoU signing were the Greek Deputy Minister for the Environment & Energy, Nikos Tsafos, the Bulgarian Minister of Energy, Iva Petrova, the North Macedonian Minister for Energy, Mining and Mineral Resources, Sanja Božinovska, the Ukrainian Deputy Minister for Recovery, Infrastructure and Transport, Artem Rybchenko, the Serbian Assistant Minister for Energy and Mining, Jovana Joksimović, the Romanian State Secretary of Energy, Cristian-Silviu Bușoi, the Honorary Consul of Hungary in Thessaloniki, Dimitrios Takas, and the Honorary Consul of Slovakia in Thessaloniki, Dimitrios Papastavrou.
The ceremony was also attended by U.S. Ambassador to Greece Kimberly Guilfoyle, U.S. Special Envoy for Energy Joshua Volz and U.S. Chargé d’Affaires in North Macedonia, Nicole Varnes.
