ICGB: Termination of Russian gas transit via Ukraine in 2025 increases importance of Vertical Corridor

The probable termination of Russian gas transit through Ukraine to Europe from January 2025 increases the significance of the Vertical Gas Corridor.

As Report informs, ICGB pipeline company CEO (operator of Greece-Bulgaria interconnector) Teodora Georgieva told journalists at COP29 in Baku.

She noted that the company is currently working on the possibility of increasing IGB pipeline capacity to 5 billion cubic meters per year.

"We are currently working on IGB expansion because we are connected not only with TAP, Southern Gas Corridor, and Azerbaijan but are also part of the Vertical Gas Corridor, as the LNG terminal in Alexandroupolis has already been launched. From this perspective, we think there is great potential to expand IGB from 3 to 5 billion cubic meters per year. Moreover, the threat of Russian gas transit termination through Ukraine at the end of this year increases the importance of the Vertical Gas Corridor along with the Southern Gas Corridor," she said.

Georgieva added that the main obstacle to IGB capacity expansion remains the lack of EU funding support, as the union does not subsidize hydrocarbon projects.

"These are some obstacles in our way, but I think together (with other Vertical Gas Corridor participants) we will manage," she noted.

Georgieva also stated that Azerbaijan plays a significant role for Bulgaria in terms of energy source diversification. "It's a very reliable partner. Initially, from 2020, it provided up to 30% of Bulgaria's gas demand, and now it's more, even though the country's consumption itself has decreased. Out of less than 3 billion cubic meters per year of Bulgaria's domestic gas consumption, 1 billion cubic meters per year comes from Azerbaijan at a very affordable price, and we are very happy to have such a reliable partner," she noted.