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The development of the vertical corridor paves the way for natural gas flows from South to North

The representatives of the companies presented the investments planned to increase the natural gas transport capacity of the vertical corridor

DESFA, National Natural Gas Transmission System, took an initiative to advance the project of the vertical corridor, which, if implemented, will make natural gas flows from South to North-from Alexandroupolis to Budapest-and vice versa possible.

The initiative was taken during a working meeting in Thessaloniki with the participation of the Natural Gas System Operators of Bulgaria (Bulgartransgaz), Romania (Transgaz), Hungary (FGGZ), Slovakia (EUSTREAM – participated as an observer), Gastrade (which manages the Alexandroupolis FSRU) and ICGB (which manages the Greek-Bulgarian IGB pipeline).

The move follows the memorandum of understanding that was signed in Athens in December 2022 and laid the foundation of the vertical corridor. The project is taking place following the successful market test (non-binding phase) for increasing the capacity of the IGB (to 5 billion cubic meters/year from 3 billion) and the particularly increased demand for capacity for importing and exporting natural gas in the first phase of DESFA’s market test for the expansion of the National Natural Gas System.

As the head of Bulgartransgaz, Vladimir Malinov, pointed out, the commercial interest recorded in the first phase of market tests at the connection points of the vertical corridor is very high, which highlights the need to increase the transport capacity along the corridor in order to handle increasing natural gas flows.

In this context, participants recognized the importance of implementing targeted projects to eliminate bottlenecks and strengthen interconnections between the systems of the countries. The representatives of the companies presented the investments planned to increase the natural gas transport capacity of the vertical corridor: In the case of DESFA, the most important is the new Compression Station in Komotini, which will increase the quantities of gas to be transported west and east of the Komotini hub in view of both the Alexandroupoli FSRU that will be connected to the National Natural Gas System (ESFA) and the other projects in the area, such as the supply of the IGB, the upgrade of the Compression Station in Nea Mesimvria – which will optimize Azeri gas flows through the TAP – and the new Compression Station in Ampelia, Farsala, which strengthens the export potential of the National Natural Gas System (ESFA) to the North.

On his part, Malinov, referred to the planning for expanding the capacity of the Bulgarian system on the border with Greece (interconnection point Sidirokastro/Kulata) and with Romania (interconnection point Kardam/Negru Voda).