2024-07-24 04:03:15
The alternative after “wreck” of the recent “test market” held for the implementation of the “Vertical Corridor” natural gas are being considered by the managers of the Balkan countries, including Greece.
The natural gas system operators from Bulgaria (BULGARTRANSGAZ and ICGB), Romania (TRANSGAZ), Hungary (FGSZ), Slovakia (EUSTREAM), Moldova (VMTG), Ukraine (GTSOU) and Greece (DESFA and Gastrade) carried out a binding market test in order to gather market interest in the creation of the “Vertical Corridor”, an upgraded pipeline system utilizing existing infrastructure, which will start from Greece and will reach Central Europe and Ukraine, transporting up to a maximum of 10 billion cubic meters (bcm) of natural gas.
The plan in question is a “product” of the overall European strategy for weaning off Russian gas, but it “stuck” to the reservations of users to make a long-term commitment in an environment of intense liquidity and at the same time in a market that has been flooded in recent months by Russian gas arriving in the Balkans via Turkey, with a price 8-10 euros cheaper than the European reference price, the Dutch TTF.
Just last week, according to competent sources who spoke to “N”, the managers discussed the matter in a teleconference, initially confirming their intention to continue efforts to create the “Vertical Corridor”.
Date in September in Athens
Decisions on “next steps” will be made in new -for-life meeting in September which is expected to take place in Athens. The critical issue that arises is the issue of financing where alternative sources will have to be sought, as the market, as shown by the results of the market test, is not available to contribute.
In this case, as the same information states, the “eyes” of the administrators are directed towards Brussels, but also the USA, as both have officially declared their support for the project in the past year.
Of course, it remains to be seen if she it will expand further and take on economic characteristics as well. In any case, the aim of the upcoming meeting, according to sources with knowledge of the discussions, is to agree on a “plan of action common to all” and which consequently will continue the project that is threatened with “premature death”.
Falling prices and reducing consumption
It should be noted that the reluctance of users to commit capacity in the long term and in fact in contrast to the results of the non-committal phase where they had expressed interest in the 27 companies from Greece and abroad, is based on the fact that the decline in fuel prices combined with the significant reduction in gas consumption creates reservations throughout the value chain, making it an unfavorable time for long-term commitments.
It is recalled that the “Vertical Corridor” concerns the creation of a gas supply route – for quantities of up to 10 billion cubic meters (bcm) per year – which will start from Greece and reach Slovakia (in its western part) and Ukraine (its eastern branch).