Bulgaria Enters the Final Phase of the Vertical Gas Corridor on its Territory Affirming Itself as a Key Route for U.S. LNG Towards Ukraine and the Region
Bulgaria is on the verge of completing key stages of the construction of the Vertical Gas Corridor on its territory. By the end of 2026, two of the planned projects under the initiative connecting gas infrastructure from the South to the North will become operational, creating a real opportunity for LNG transit, including U.S. LNG, from Greece to Ukraine and countries in Central and Eastern Europe, Minister of Energy Traicho Traikov stated during a Ministerial Meeting in Washington on the topic of gas supply security and diversification in the region.
Bulgaria is the first state to commence real construction of the Vertical Gas Corridor, making our country an active driver in regional energy security efforts, Minister Traikov stressed.
Projects are underway to expand the capacity of the key interconnection points IP Kulata/Sidirokastro (Greece – Bulgaria) and IP Negru Vodă/Kardam (Bulgaria – Romania). The Vertical Gas Corridor represents the “motorway” from the South to the North along which up to 10 billion cubic metres of liquefied natural gas can annually be transited towards Ukraine and the broader region via the IP Negru Vodă 1/Kardam.
Our country has already applied for partial grant funding under the European Union Modernisation Fund. If approved, it will allow the development of a competitive tariff structure to the benefit of both Bulgarian and regional users of the gas transmission network.
The interconnection points at Stara Zagora and Komotini (Greece) are expected to be made operational with an increased capacity next year. Along with the strategic role for source diversification, these projects will provide natural gas traders with even greater flexibility in managing supply and access to new markets.
A Long Path Stemming From the 2009 Crisis
“Intentional diversification efforts in our region commenced some 17 years ago – immediately after the cutoff of Russian gas supply in 2009. Back then Sofia, heated with natural gas, literally began cooling down,” Minister Traikov recalled. According to him, this crisis precisely led to a decisive shift in European policy and to the active support of the European Commission for the development of Bulgaria’s interconnectors with Greece, Romania and Serbia. “The most important one is with Greece as it laid the foundation of the Southern Gas Corridor and everything we do today,” the Minister stressed.
Minister Traikov noted that despite the missed opportunities in the past, including the Nabucco Project that fell through, the steps undertaken for diversification have yielded tangible results.
“When the larger crisis of February 2022 hit and Gazprom demanded payment in Rubles, we were prepared. We politely declined, as this infringed our contract, and nothing happened. At the same time, Bulgaria received two tankers of U.S. LNG, and this was clear evidence that diversification worked,” the Minister stated.
U.S. LNG – New Opportunities for Bulgaria and the Region
During the Transatlantic Summit in Washington, the Minister of Energy signed a declaration supporting the launch of negotiations by Bulgargaz to import American liquefied natural gas (LNG). The document was signed in the presence of Doug Burgum, U.S. Secretary of the Interior and Chair of the National Energy Dominance Council, and Chris Wright, Secretary of Energy.
Minister Traikov emphasised that this was a timely and logical step in the context of the commitment of Bulgaria and the European Union to discontinue Russian gas imports. This includes a legally binding ban on Russian LNG and pipeline gas imports, from the end of 2026 and autumn of 2027 respectively.
“After phasing out Russian gas, including liquefied natural gas, starting from next year the majority of imports currently making it in ‘through the back door’ will most probably become impossible. Therefore, the Vertical Gas Corridor is not simply an infrastructure project – it is a key tool for the region’s energy security and for real supply diversification,” Minister Traikov outlined.
During his visit, the Minister held a meeting with Thomas Summers, Executive Vice President, Shell LNG Marketing and Trading, discussing opportunities for long-term cooperation in the field of LNG supply to Bulgaria and the region, as well as the advancement of natural gas exploration in the Black Sea. Talks were also held with the ministers of energy of Romania, Greece, Serbia, Hungary, and Slovakia, with U.S. Secretary of Energy Chris Wright, Under Secretary of State for Economic Growth, Energy, and the Environment Jacob Helberg, and Deputy Secretary of State for Management and Resources Michael Rigas. Minister Traikov also met with Jack Fusco, Director, President and CEO of the largest LNG producer Cheniere Energy, Freeman Shaheen, President of Chevron Global Gas, and Joshua Volz, Special Envoy for Global Energy Integration.
