DESFA hosted today a hybrid event in Athens, within the framework of the “Vertical Corridor” initiative, bringing together Gas Transmission System Operators from across the Central East and Southeast Europe to discuss about the upcoming binding phase for the implementation of the pivotal expansion projects.
The event honored with their presence Ms. Alexandra Sdoukou, Deputy Minister of Environment and Energy, Mr. Csaba Marosvári, Deputy State Secretary for Energy Security of Hungary, who delivered their opening remarks, along with Maria Rita Galli, CEO of DESFA, while Ms. Gergana Stoitcheva, Energy Consultant at the United States Energy Association, JET/USAID, greeted attendees online. They all emphasized the significance of collaboration and the critical role of the initiative in enhancing energy security and promoting the diversification of supply sources throughout South-Eastern, Central, and Eastern Europe.
During the event, representatives of participating companies, including DESFA and Gastrade (Greece), ICGB and BULGARTRANSGAZ (Bulgaria), TRANSGAZ (Romania), FGSZ (Hungary), EUSTREAM (Slovakia), VMTG (Moldova), and GTSOU (Ukraine), provided vital insights into the necessary expansion projects and their pivotal role in ensuring the success of the Vertical Corridor Initiative. Participants also had the chance to share details for participation in the binding phase of the upcoming incremental capacity process. The event offered a unique opportunity for approximately 250 interested stakeholders from Greece and abroad to gain vital insights into this pivotal project.
Participants in the Vertical Corridor initiative have committed to intensifying their efforts to advance to the next phase, prioritizing coordinated actions aligned with market-based solutions and European legislation. As part of this strategy, they will simultaneously execute the binding phase of incremental capacity process at their respective interconnection points in July 2024, one year earlier than it is foreseen in the European Regulation, as per the agreement reached during the CESEC Ministerial Conference held in Athens in January 2024. This process is transparent and in line with the CAM Regulation (EU) of the European Commission. Subsequently, guided by user demand, they will identify and evaluate the most suitable and targeted capacity expansion projects required to meet demand along the route of the Vertical Corridor.
The Vertical Corridor initiative aims to enhance the transmission of natural gas to the EU market, from Greece to Bulgaria, Romania, Hungary, Slovakia, Moldova and Ukraine 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. This potential can be further extended by the use of said infrastructures for renewable gases and hydrogen.
Regarding the Greek segment of the Vertical Corridor, significant progress has already been made. On May 2, DESFA announced the commencement of the binding phase of the market test to increase its capacity, potentially activating investments up to 570 million euros. Stakeholders are invited to register for participation in this phase by June 24. The submission of binding offers is scheduled between July 2-12, followed by an evaluation period.
In opening remarks, Alexandra Sdoukou, Deputy Minister of Environment and Energy, emphasized: “In today’s ever-changing energy landscape, collaboration to create flexible regional energy systems and ensure the security of supply has become a top priority. The Vertical Corridor represents a prime example of regional cooperation aiming for a unified response to the need of opening new energy routes, strengthening energy security, and further diversifying supply sources in a broad and critical area for the whole of Europe, through a long-term collaboration. Participant TSOs in today’s event have worked intensively to identify the necessary expansion and upgrade projects to remove the bottlenecks along the project’s route. We are looking forward, as a Ministry, to see the results of this exercise, through the upcoming joint binding market test, and understand which are the missing pieces of this puzzle. Greece and DESFA have taken a leading role in supporting and promoting this effort, with our country standing as a reliable partner and a pillar of energy stability, ready to serve as a natural entry gateway for gas, from the south to the north, with the infrastructure having he capacity to transport, apart from natural gas, hydrogen and renewable gases in the future. Thus, the success of the Vertical Corridor can be a turning point in strengthening energy security and accelerating the energy transition of the entire European Union.”
The Deputy State Secretary for Energy Security of Hungary, Csaba Marosvári, noted that “Regional natural gas interconnectivity holds an increased significance to many countries in Central and Southeast Europe. Natural gas is an integral and reliable part of the energy mix and will remain so, as throughout the energy transition process we will still need to resolve daily challenges of our energy systems, supply energy to our households, fuel our industries, keep our business running and balance renewable energy production. Hungary, with the key role of FGSZ, has accelerated its efforts to increase interconnectivity, enable diversified energy routes and ensure security of supply. To that end, our country is committed to supporting and promoting the Vertical Corridor initiative as an example of regional coordination for strengthening interconnectivity and energy security in the area. Coordination between all involved stakeholders, as well as political and funding support from the EU have an essential role in the success of the Vertical Corridor’s efforts to allow the diversification of our gas supply sources through opening new energy routes in our region.”
On the occasion of the event, the CEO of DESFA, Maria Rita Galli, stated: "The energy crisis might seem over, but we are still in a very fragile environment, that demands increased availability of diversified and abundant energy routes. The complexity of these challenges cannot be dealt by each of us alone but can only be addressed through working together. To that end, the Vertical Corridor initiative holds significant importance, as it will strengthen the resilience of our energy systems and create multiple import routes. A critical element of this initiative are the very selected projects to maximize the utilization of our existing infrastructure and pave the way for their use for other energy carriers in the future. Following a huge collaborative effort, we have reached a very important moment in the project, where we are ready to collect the needs of the market. We invite market players to engage in this process and express their needs for the future, as it is only through the reciprocal commitment of all involved stakeholders that we can secure the success of this initiative.”
