Market interest in transporting natural gas through the Vertical Gas Corridor from Greece remained weak in the latest capacity auction for February. According to market sources, the auction attracted a single bid covering the transfer of 48 megawatt-hours (1,638 therms) via the Revithoussa LNG terminal.
Traders showed no interest in the other two available routes—the Alexandroupolis floating LNG terminal and the Trans Adriatic Pipeline. The result mirrors the weak demand seen in December’s auctions and raises questions about the project’s near-term commercial viability.
Uncertainty weighs on market appetite
Officials at the Ministry of Environment and Energy attribute the subdued response in Greece’s Vertical Gas Corridor auctions to ongoing geopolitical instability and regulatory uncertainty at the European level.
Although the European Union has committed to ending imports of Russian natural gas, key regulatory and market issues surrounding alternative supply routes remain unresolved, limiting market participation. Despite the current weak demand, ministry officials remain cautiously optimistic. They expect future auction rounds to attract greater interest as the regulatory framework becomes clearer and regional conditions stabilize.
US signals strong support
Despite weak market interest, the US ambassador adopted a sharply different stance. In a social media statement, Kimberly Guilfoyle, the US Ambassador to Greece, praised the EU’s RePowerEU legislation, describing it as a critical step toward European energy independence.
She highlighted that the framework sets a clear target for the EU to fully phase out Russian gas imports by autumn 2027 and confirmed that the United States stands ready to supply European partners with reliable natural gas. Projects such as the Vertical Gas Corridor are, she said, essential for strengthening regional energy security and resilience.
“The United States welcomes and supports Europe’s move toward energy independence, and Greece plays a central role in this transition,” Guilfoyle maintained.
.@POTUS has made clear that ending Europe’s reliance on Russian energy is a priority. The European Union’s adoption of RePowerEU legislation to end all Russian gas imports by fall of 2027 is a step toward that goal. The United States stands ready to supply more reliable gas to…
— Ambassador Kimberly Guilfoyle (@USAmbassadorGR) January 28, 2026
What the Vertical Gas Corridor is designed to do
The Vertical Gas Corridor leverages both existing and new European natural gas and LNG infrastructure, including floating storage and regasification units. Project planners aim to transport between 20 and 25 billion cubic meters (126–158 million barrels of oil equivalent) of natural gas annually from south to north, positioning Greece as a key gateway for non-Russian gas into Europe.
Supplies would originate from Greek terminals, including the long-operating Revithoussa LNG facility and the newly commissioned Alexandroupolis FSRU, before entering Bulgaria. From Bulgaria, gas would flow north toward Romania, Hungary, and Slovakia, while separate routes would carry volumes eastward to Moldova and Ukraine. This multi-directional layout is designed to diversify supply routes and reinforce energy security across Central and Southeastern Europe.
Capacity expansion and Greece’s strategic role in the Vertical Gas Corridor
In the first phase, developers plan to increase transmission capacity from Greece to Bulgaria by roughly 50 percent, raising annual volumes from 2.3 to 3.6 billion cubic meters (approximately 14–23 million barrels of oil equivalent). In a second phase, operators aim to double capacity toward Romania, with annual flows reaching up to 10 billion cubic meters (about 63 million barrels of oil equivalent).
The Vertical Gas Corridor aligns with the EU’s broader strategy to reduce dependence on Russian gas. Suppliers are expected to deliver primarily US liquefied natural gas (LNG), with additional volumes potentially coming from Azerbaijan and the Eastern Mediterranean.
Structural challenges remain
Despite its strategic importance, the Vertical Gas Corridor still faces structural obstacles. High transit tariffs, particularly in countries such as Romania, continue to raise questions about the corridor’s commercial competitiveness. At the same time, transmission system operators across the region are actively advancing the project.
Greek operators, including the National Natural Gas System Operator (DESFA) and Gastrade, are working alongside counterparts in Bulgaria, Romania, Hungary, and Slovakia to promote the corridor through Projects of Common Interest and other regulatory initiatives aimed at unlocking cross-border capacity.
