A regional project involving seven countries aims to replace Russian gas and expand transmission capacity across East and Central Europe. The Vertical Gas Corridor, designed to significantly increase gas supplies from LNG terminals at Greek ports on the Mediterranean through Bulgaria to Romania, Hungary, Slovakia, Moldova and Ukraine, is expected to be completed by 2026, according to Vladimir Malinov, Executive Director of the Bulgarian state gas transmission operator, Bulgartransgaz, speaking on Tuesday, 28 October.
The Vertical Gas Corridor (also known as the Vertical Corridor) is a major European energy infrastructure initiative designed to create a north-south natural gas transmission network spanning Southeastern and Central Europe, involving Greece, Bulgaria, Romania, Hungary, Slovakia, Ukraine and Moldova. It aims to diversify gas supplies, enhance regional energy security, and reduce dependence on Russian hydrocarbons by enabling the bidirectional flow of gas – primarily regasified liquefied natural gas (LNG) and gas from the Caspian region – from southern entry points in Greece northward to landlocked and Eastern European countries. This corridor repurposes and expands existing pipelines, such as the Trans-Balkan pipeline (historically used for Russian gas transit), to transport up to 10 billion cubic meters (bcm) of gas annually once fully operational.
Infrastructure currently under construction on Bulgarian territory will increase transmission capacity from Greece to Bulgaria by over 50% and from Bulgaria to Romania by nearly 100%. The total transmission capacity through Bulgaria to the Romanian border is expected to reach 10 billion cubic meters annually.
In the longer term, the pipeline will be able to transport liquefied natural gas (LNG) from the United States and the Caspian region, providing alternative gas supply routes for Moldova, Ukraine and Hungary.
On Tuesday, European Commissioner for Energy Dan Jørgensen, Bulgarian Energy Minister Zhecho Stankov, and Hungary’s Deputy State Secretary for Energy Security, Csaba Marosvári, inspected the progress of the project on Bulgarian territory.
“The capacities currently offered by Bulgartransgaz towards Romania are over 70% booked for the current gas year. On a daily basis, utilisation reaches an average of 90%,” said Malinov.
He also addressed Commissioner Jørgensen, saying: “Let’s make energy great again under your leadership.”The construction of the Vertical Gas Corridor in Bulgaria is estimated to cost around one 500 million euro, financed through state-guaranteed loans taken by Bulgartransgaz.
Csaba Marosvári commented that the European Commission should resume funding projects like the Vertical Gas Corridor, especially when they are strategic and provide supply diversification. He stated that Hungary is actively working to expand the capacity of its network by connecting it with Ukraine, Moldova and Romania.
However, this issue is currently not on the European Commission’s agenda, as natural gas is no longer considered part of the EU’s strategic investment priorities. Funding for cross-border gas corridors from European sources was banned in 2022 and is currently impossible.
During Commissioner Jørgensen’s visit to Bulgaria, it became clear that the issue of financing new gas routes could be raised during negotiations on the EU’s next budget framework for the 2028–2035 programming period.
Commissioner Jørgensen described the Vertical Gas Corridor as “the path by which the European Union says “no” to Vladimir Putin and to Russia’s use of energy as a weapon or as a means of blackmailing member states.” He added that the corridor is “of exceptional importance for European security. “The project demonstrates solidarity and support for Moldova and Ukraine, while ensuring reliable energy supplies for all EU citizens at affordable prices,” the Commissioner stressed.
Against this backdrop, Bulgarian authorities view the country’s strategic location as key to developing its energy business.
“Bulgaria is consolidating its growing role as a transit centre that connects, balances, stores and guarantees reliable energy supplies for the entire region. Our goal is to achieve security and predictability, positioning ourselves as a regional hub in Southeast Europe,” Minister Stankov stated.
At present, Bulgaria earns over 75 million euro annually in transit fees for transiting Russian gas via the continuation of the TurkStream pipeline to Serbia and Hungary. However, the country must quickly find alternative revenue sources as Russian gas flows are expected to cease by 2027.
The Vertical Gas Corridor, an expansion and extension of the existing Trans-Balkan gas pipeline, creates opportunities to offset the anticipated loss of part of Bulgaria’s gas-related revenues.
“As Europe takes its final decisive step to abandon Russian natural gas, it becomes clear how timely and correct the decision we made together with our fellow operators was — to launch the Vertical Gas Corridor initiative. In this way, we contribute through our key role to the complete phase-out of Russian natural gas,” stated Malinov.