Work continues on the implementation of the Vertical Gas Corridor
2024. 01. 22.
The TSOs of Slovakia, Ukraine and Moldova have also joined the initiative
In the framework of the CESEC Ministerial meeting convened by the European Commission, a new Memorandum of Understanding (MoU) was signed by the gas infrastructure operators so far participating in the Vertical Gas Corridor initiative, and new signatories - such as Slovakia (EUStream), Moldova (Vestmoldtransgaz) and Ukraine (GTSOU) - also joined the initiative.
The current MoU reinforces the previous cooperation between the Greek (DESFA and Gastrade), Bulgarian (ICGB, Bulgartransgaz), Romanian (Transgaz), Hungarian (FGSZ) and Slovak (eustream) gas and LNG transmission system operators aimed at implementing the Vertical Corridor project in a coordinated way to enhance energy security and further diversify sources of natural gas in the wider region.
Through the appropriate upgrading of the networks of the above countries, the Vertical Corridor will allow the transport of gas from the South to North 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 and potential natural gas sources, mainly from the South. This potential can be further broadened by the use of the existing domestic infrastructures for renewable gases and hydrogen.
System operators also stressed that the implementation of the Vertical Corridor initiative will require public support and funding and expressed their commitment to promote PCI and other necessary projects, jointly or individually. Participating companies also underlined their intention to support each other in securing funding from European and other funding sources for this mutual objective. They also agree to seek, where appropriate, the facilitation and guidance of the European Commission.
As for the next steps, participants will prioritize their coordination in harmony with market-based solutions and European legislation. In this context, they expressed their commitment to carry out simultaneously, in July 2024, one year earlier than the foreseen schedule, a binding market test for capacity allocation at their respective interconnection points, according to the CAM Regulation (EU) of the European Commission. Then, based on network user interest, they will identify and size the most appropriate and targeted capacity expansion projects needed to meet demand along the Vertical Corridor route.
On the signing of the Memorandum, FGSZ Chairman-CEO, Szabolcs I. Ferencz, stated:
"With this agreement, we have become closer to create the Vertical Gas Corridor via our cooperation, which would provide access to additional alternative gas sources for our CEE region. We are confident that as a result, synergies between the participants will be better utilized and network developments in each country will remove existing bottlenecks along the route. Ultimately, we will be able to facilitate new capacities to additional alternative sources mainly from the direction of Greece via Bulgaria in the near future."