Vertical Gas Corridor upgrades set to lift Southeast Europe gas flows and LNG access

Upgrades linked to the Vertical Gas Corridor are expected to materially improve natural gas flows across Southeast Europe in the coming months, with investors watching how quickly additional capacity can translate into more reliable supply and better commercial terms. Bulgartransgaz CEO Vladimir Malinov said the program is aimed at strengthening connectivity as demand for liquefied natural gas (LNG) continues to rise across Central and Southeastern Europe.

Capacity increases scheduled in phases

Speaking at the Energy Transition Summit in Athens, Malinov confirmed that new infrastructure intended to increase gas transmission capacity from Greece to Bulgaria is scheduled to begin operations on 1 July. He added that a second phase—focused on expanding transport capacity between Bulgaria and Romania—is expected to become operational before the end of the year.

Tariff optimization and LNG supply competitiveness

The upgrades are part of broader efforts to diversify supply routes and deepen energy connectivity across the region. Malinov said major international LNG suppliers, particularly leading US energy companies, increasingly view the corridor’s infrastructure as both reliable and strategically important.

He also pointed to close cooperation between transmission system operators, regulators, and the European Commission, which has already helped establish a framework for long-term tariff optimization along the corridor. According to Malinov, the revised tariff structure is expected to improve market attractiveness, support stronger competition, and create better conditions for securing gas supplies—including LNG imports—under more favorable commercial terms.

Regional coordination could strengthen purchasing power

Malinov emphasized that tighter regional coordination in negotiating future supply agreements could benefit participating countries. By combining gas demand across nations connected through the Vertical Gas Corridor, regional buyers may gain greater bargaining power with LNG exporters, potentially helping secure lower long-term prices while also reducing overall transmission costs across the network.

For market participants, the key question is how these phased capacity additions and tariff changes affect contracting dynamics—particularly whether improved economics and coordination can translate into more competitive LNG-linked supply arrangements throughout Southeast Europe.