Gastrade, operator of the floating LNG regasification terminal in Alexandroupolis, has proposed extending capacity booking auctions on the Vertical LNG Corridor through September 2026 and offering products longer than one month. The move aims to create a stable LNG market, enhance the corridor’s competitiveness, and secure better prices for U.S. LNG shipments to Ukraine and other Southeast European countries.
The Vertical LNG Corridor as a Strategic Infrastructure
Gastrade, a joint venture with 20% stakes each from Elmina Kopelouzos, GasLog Cyprus Investments, DEPA Commercial, Bulgartransgaz, and DESFA, emphasizes that transporting U.S. LNG via Greek infrastructure to Ukraine should be expanded both in duration and scope.
The Vertical LNG Corridor is becoming a critical energy axis, strengthening Greece’s connectivity with Southeast and Central Europe and positioning the country as a key LNG hub.
Proposals for Longer-Duration Products
In its submission to the RAAEY public consultation, Gastrade proposed:
- Extending the product availability at least until the end of the current gas year, allowing long-term LNG contracts and securing better supply prices.
- Offering Route 2 in longer-duration products, beyond monthly allocations, e.g., quarterly, with corresponding discounts. This is crucial because the current monthly capacity (20–25 GWh/day) may not suffice for full LNG cargo fulfillment within one month.
These proposals aim to increase flexibility, improve corridor competitiveness, and facilitate operational planning for large LNG shipments.
Expanding the LNG Market in Southeast Europe
Gastrade envisions Greece as an entry and distribution hub for LNG across Southeast Europe. Meanwhile, Atlantic – See LNG Trade, a joint venture between DEPA Commercial and AKTOR, has signed a long-term contract with Venture Global, effective from 2030, while negotiating with Bulgaria, Hungary, and Moldova for LNG sales, with agreements already in place for Romania and Ukraine.
This strategy creates a dynamic, long-term energy network, allowing immediate and sustained LNG trading beyond Ukraine.
Infrastructure and Future Plans
Gastrade plans to add a second FSRU in the Thracian Sea, increasing regasification capacity and reinforcing the Vertical Corridor’s reliability.
At the same time, DESFA is working to establish the corridor as a northbound and westbound gas transport route, offering substantial network fee discounts and closely cooperating with transit-country operators.
With these proposed auction changes, Gastrade aims to:
- Provide greater flexibility and planning certainty for corridor users
- Enhance competitiveness relative to alternative supply routes
- Build a stable, long-term LNG market in Ukraine and Southeast Europe
The Vertical LNG Corridor is emerging as a strategic energy asset for Greece, strengthening its position on the European energy map and establishing the country as a key LNG hub for the region.
Source: pagenews.gr