Less dependence on Russia: how Ukraine is connecting to Greek LNG terminals
29 May 21:10
Amid ongoing energy instability in the region, Ukraine is launching a new guaranteed capacity route for natural gas imports from Greece. This is reported by "Komersant Ukrainian", citing information from the Independent Gas Transmission System Operator of Ukraine published on Facebook on May 29.
This step is a strategic attempt to diversify energy sources, reduce dependence on traditional supply channels and strengthen the country’s energy security.
New corridor: who is involved and how it works
The project is being implemented in partnership between five national gas transmission system operators: DESFA (Greece), Bulgartransgaz (Bulgaria), Transgaz (Romania), VestMoldTransgaz (Moldova) and the Ukrainian GTS Operator. The route runs from Greece to Ukraine through the territory of Bulgaria, Romania and Moldova and uses the existing infrastructure of the Trans-Balkan gas corridor.
The route will be in operation from June to October 2025. At the first stage, its throughput capacity will be up to 3 million cubic meters per day, which is equivalent to about 1 billion cubic meters per year. For comparison: in 2023, Ukraine imported about 1.8 bcm of gas, so the new route can cover a significant portion of the country’s needs during the off-season.
Gas will be supplied through five key interconnection points:
- Sidirokastro/Kulata (Greece/Bulgaria),
- Kardam/Negru-Voda (Bulgaria/Romania),
- Isaccea/Orlivka (Romania/Ukraine),
- Kaushany (Moldova/Ukraine);
- Hrebenyky (Moldova/Ukraine).
A market mechanism and an attempt to stimulate demand
An innovative feature of the project was the approach to capacity allocation: all bookings are made through a single auction on the Regional Booking Platform (RBP), which ensures transparency and market competition. The first auction, which offered capacity for June 2025, took place on May 29. However, according to the operators, it did not result in the booking of the announced volumes.
The reasons for the lack of interest from market participants may be related to the uncertain situation on the spot market, as well as the availability of alternative supply routes, in particular through Poland, Slovakia, and Hungary. The operators do not rule out the possibility of holding an additional auction and revising the terms and conditions.
Tariffs and privileges: made to compete
Fare discounts were introduced to make the route more attractive. Operators in Bulgaria, Romania, Moldova, and Greece offered a 25% reduction in the cost of transportation on their sections. Ukraine, on the other hand, went even further, offering a 46% discount on transit through its territory.
Thus, the total savings for importers can be significant, especially given that the route provides access to Greek LNG terminals, in particular, the Revithousa terminal, which actively receives liquefied natural gas supplies from the United States, Qatar and Algeria.
Read also: European gas is getting more expensive: Ukraine may lack $2.9 billion
Geopolitical and economic context
The new route is not just a logistics project, but also an element of geopolitical strategy. It allows Ukraine to strengthen ties with southern European countries that are actively involved in the EU’s new energy security architecture and is another step towards integration into the European gas market.
In addition, diversification of routes meets the requirements of energy sustainability. Given possible supply disruptions in other directions, the Trans-Balkan corridor becomes a backup route that can be quickly scaled up in case of crises.
Although the first auction did not cause a stir, the potential of the new route is obvious. Given a flexible market mechanism, tariff preferences, and political support, the project can attract the attention of traders and suppliers in the coming months. The successful launch of the route could become a model for future projects in the region aimed at reducing dependence on Eastern suppliers and developing integration into the European grid.
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