Published: December 06 2023
A recent meeting in Budapest brought together the heads of gas transmission system companies from Greece, Bulgaria, Romania, Slovakia, and Hungary to discuss the implementation of the Vertical Gas Corridor. The meeting also included representatives from Ukraine as observers. One of the key topics discussed was the possibility of gas flowing back to Central and Southern Europe through a trans-Balkan pipeline.
Gas Flow Direction and Capacity
During the meeting, the CEO of the Ukrainian system operator, GTSOU, proposed the creation of "guaranteed capacities" to allow the gas pipeline to operate in reverse mode along the entire Balkan route. This would involve increasing the capacity of the Bulgarian and Romanian gas transmission systems. The Ukrainian operator emphasized the importance of the Bulgarian transmission system's carrying capacity in ensuring additional flows. The Trans-Balkan gas pipeline is already partially in reverse operation, with more than 0.5 million cubic meters of gas transported in 2023.
Benefits and Considerations for Bulgaria and Hungary
Expanding the capacity of the gas corridor would be beneficial for Bulgaria, as it could store gas in Ukraine during the summer and transport it back home in the winter. Although Hungary may be bypassed if the transportation route goes through Bulgaria, Romania, and Ukraine, there is a possibility of gas from Romania being transported to Ukraine via Hungary. From a commercial and security of supply perspective, the new gas corridor is a positive step.
Diversification of Gas Supply Routes
In addition to the discussion on the trans-Balkan gas pipeline, GTSOU also had conversations with DEPA, Greece's largest gas importer and supplier, regarding further diversification of gas supply routes. They discussed the potential storage of Greek gas in Ukraine, which would involve using the Trans-Balkan corridor. The meeting highlighted the technical and commercial challenges of expanding the gas pipeline's capacity and the need to coordinate efforts with other stakeholders, including Bulgarian, Romanian, and Moldovan gas companies.
Conclusion
The gas pipeline meeting in Budapest focused on increasing energy security in Central and Southern Europe through the implementation of the Vertical Gas Corridor. Key discussions revolved around the possibility of gas flowing back through a trans-Balkan pipeline and the need to increase the capacity of the gas transmission systems in Bulgaria and Romania. The meeting highlighted the potential benefits for Bulgaria and the importance of diversifying gas supply routes.
Questions & Answers
What was the purpose of the gas pipeline meeting in Budapest? The purpose of the gas pipeline meeting in Budapest was to discuss the implementation of the Vertical Gas Corridor and increase energy security in Central and Southern Europe.
Which countries were represented at the gas pipeline meeting in Budapest? The heads of companies operating the Greek, Bulgarian, Romanian, Slovakian, and Hungarian gas transmission systems attended the meeting.
What was the proposal presented by the Ukrainian system operator at the meeting? The Ukrainian system operator proposed creating "guaranteed capacities" to operate the gas pipeline in reverse mode along the entire Balkan route and increase the capacity of the Bulgarian and Romanian gas transmission systems.
Why is increasing the capacity of the Bulgarian transmission system important? Increasing the capacity of the Bulgarian transmission system is important to ensure additional flows and meet the market demand assessment for transportation via the Trans-Balkan route to Ukraine's underground gas storage facilities.
What is the potential benefit for Bulgaria if the gas corridor is expanded? Bulgaria, with its minimal storage capacity, could benefit greatly from the capacity expansion as it could store gas in Ukraine during the summer and transport it home in the winter.
How could Hungary be affected if the gas transport goes through Bulgaria, Romania, and Ukraine? If the gas transport goes through Bulgaria, Romania, and Ukraine, Hungary would be left out. However, it is also possible that gas from Romania could be transported to Ukraine through Hungary.
How can gas be transported from Ukraine to Hungary through the existing pipelines? If the gas reaches Ukraine through the corridor, it can be easily transported from there to the Hungarian network through the existing pipelines.
Who discussed the further diversification of gas supply routes with the Ukrainian system operator? The state-owned DEPA, Greece's largest gas importer and supplier, discussed the further diversification of gas supply routes with the Ukrainian system operator.
What were the challenges highlighted in expanding the capacity of the gas pipeline? The technical and commercial challenges of expanding the capacity of the gas pipeline were highlighted, and it was agreed to coordinate efforts with other potential stakeholders, including Bulgarian, Romanian, and Moldovan gas companies.
Where can I find more information about the gas pipeline meeting in Budapest? You can find more information about the gas pipeline meeting in Budapest on the website Világgazdaság.
