Greece at the Energy Crossroads: Three Auctions for the Vertical Gas Corridor and LNG Deals with the US

Greece is today at the center of a crucial energy and geopolitical test, as three capacity auctions are taking place for the Vertical Gas Corridor transporting natural gas from Greece to Ukraine. At the same time, Stavros Papastavrou, Minister of Environment and Energy, meets with US Ambassador to Greece Kimberly Gilfoyle to discuss US LNG supply contracts and Greece’s role as a gateway of energy security for Southeastern Europe.

Three Auctions – Three Strategic Routes

The auctions cover Route 1, Route 2, and Route 3, representing unified capacity commitments along the entire Vertical Corridor via the Regional Booking Platform (RBP), with transparent and standardized access.

Notably, Route 2 and Route 3 are being auctioned for the first time, following approvals from the regulatory authorities of Greece, Bulgaria, Romania, Moldova, and Ukraine. Requests for these routes came from the gas transmission system operators: DESFA (Greece), Bulgartransgaz, Transgaz (Romania), Vestmoldtransgaz, Gas TSO of Ukraine, and ICGB, the independent operator of the Greece–Bulgaria interconnector.

• Route 1: Gas from Revythoussa – 8th auction today
• Route 2: LNG from Alexandroupolis FSRU
• Route 3: Azerbaijani gas via the TAP pipeline

This structure underscores Greece’s ambition to function as a multi-energy hub, combining LNG and pipeline gas.

Discounts: Key to Making the Corridor Attractive

To enhance market interest, transmission operators introduced significant network fee discounts:

• DESFA & Bulgartransgaz: 25%
• Transgaz & Vestmoldtransgaz: 50%
• Ukraine LLC & ICGB: 45%

This approach already paid off in the Route 1 auction last November, which saw strong commercial interest. Yet, the route remains relatively expensive, especially compared to competition from Poland, Lithuania, and Croatia, all of which operate large FSRUs supplied with US LNG.

Washington in the Loop – Regulatory Coordination on the Table

The US government is closely monitoring the Vertical Corridor. Transporting US LNG to Ukraine and Southeastern Europe is a strategic priority, both energy-wise and geopolitically.

During Papastavrou’s recent visit to Washington, agreements included the creation of a working group aimed at:

• harmonizing the regulatory framework
• optimizing tariffs
• enhancing route competitiveness

A ministerial meeting of the five countries is also expected in the first quarter of 2026, to finalize policy decisions regarding the corridor’s future.

Today’s auctions are more than technical procedures—they are a test of credibility for the Vertical Gas Corridor and a measure of Greece’s geopolitical weight in Europe’s evolving energy landscape.

Whether Greece becomes a key LNG gateway to Ukraine will depend not only on infrastructure but also on pricing, regulations, and alliances. And all of these factors are now being decided simultaneously in Athens, Brussels, and Washington.

Source: pagenews.gr