Vertical Gas Corridor Prepares Western Balkan Expansion as Serbian and North Macedonian Operators Join Talks
The Vertical Gas Corridor is preparing to expand into the Western Balkans. NOMAGAS of North Macedonia and Transportgas Srbija of Serbia joined the initiative's discussions for the first time when its transmission system operators met in Athens on 10 July 2026, marking a step towards the planned expansion. Their formal inclusion remains subject to the proposed extension of the initiative’s Memorandum of Understanding.
Eleven operators took part in total. From Greece, DESFA and Gastrade; from Bulgaria, Bulgartransgaz; ICGB, the joint Greek-Bulgarian interconnector operator; then Transgaz of Romania, Vestmoldtransgaz of Moldova, FGSZ of Hungary, EUSTREAM of Slovakia and GTSOU of Ukraine, plus the two newcomers. On the agenda: expansion, available capacity at interconnection points, infrastructure projects and their timelines.
What the Vertical Gas Corridor Is
The Vertical Gas Corridor is a cooperation initiative among regional gas-system operators built around an idea of moving gas from south to north. It provides a route for gas entering through Greek LNG infrastructure to move towards markets in Southeastern and Central Europe, including Ukraine, using existing networks and targeted infrastructure upgrades. The route can also provide access to Ukraine’s underground gas-storage system.
The route mattered before, but it became more strategically important as Europe reduced its dependence on Russian gas and traditional regional flow patterns changed. Whether the corridor works commercially is a separate question from whether it works technically. Capacity products and tariffs decide that, and the same constraint applies in particular to the Trans-Balkan route.
What Was Agreed in Athens
The meeting produced two concrete decisions.
The operators will set up a joint technical and commercial working group. Its brief covers the interconnection-capacity framework across the participating systems, the longer-term market outlook, and the corridor's commercial attractiveness, including its tariff structure and infrastructure needs. The operators also agreed to prepare an extension of the Memorandum of Understanding so the new members can formally join.
The Greek and Bulgarian energy ministers, Stavros Papastavrou and Iva Petrova, attended briefly and conveyed political support for submitting concrete priority-investment proposals to the European Commission to improve the region’s energy resilience.
Neither step books additional capacity by itself. The decisions create a common forum for assessing cross-border capacity, tariff structures and infrastructure needs. Any resulting tariff changes, infrastructure investments or additional capacity would require subsequent decisions and, where applicable, regulatory approvals. Why Serbia and North Macedonia Matter for the Route
The two new participants could support the development of a western extension of the initiative. Until now, the Corridor’s principal routes have connected Greece with markets in Bulgaria, Romania, Hungary, Slovakia, Moldova and Ukraine.
North Macedonia borders Greece directly, and its planned inclusion could improve its integration into regional supply routes connected with southern LNG entry infrastructure. Serbia is geographically connected with several countries participating in or associated with the Corridor, and its planned inclusion could create additional routing options between the Western Balkans and neighbouring gas systems.
Adding more interconnected markets may broaden the potential demand base for Corridor capacity. However, the commercial impact will depend on available interconnection capacity, tariff levels, infrastructure development and actual shipper demand.
What This Means for Market Participants
For traders active in Southeast Europe, the variables to watch have not changed: capacity products and tariffs. Cumulative cross-border charges can be a significant commercial obstacle on multi-system routes and may erode the economics of south-to-north deliveries.
The Athens meeting fits a broader pattern of regional integration, alongside the SEEGAS process and new cross-border supply routes into Moldova. The planned expansion could improve coordination and create additional routing opportunities, but it does not by itself integrate the participating balancing zones or establish a single commercial market.
Key Terms
Vertical Gas Corridor – a coordinated initiative among regional gas-system operators supporting south-to-north gas flows from Greek entry infrastructure towards markets in Southeastern and Central Europe, including Ukraine.
TSO – transmission system operator, the regulated entity that operates a gas transmission network.
NOMAGAS – the gas transmission system operator of North Macedonia.
Transportgas Srbija – the Serbian gas transmission system operator.
Memorandum of Understanding (MoU) – the framework document under which the corridor's participating operators cooperate; an extension is being prepared to include the new members.
Frequently Asked Questions
What is the Vertical Gas Corridor?
A cooperation initiative among regional gas-system operators that supports gas flows, primarily regasified LNG from Greek terminals, northwards through interconnected systems towards Moldova, Ukraine and Central Europe. Which countries joined the Vertical Corridor talks in July 2026?
North Macedonia (via NOMAGAS) and Serbia (via Transportgas Srbija). Both participated for the first time at the Athens meeting on 10 July 2026. Their formal inclusion is expected to follow through an extension of the MoU.
What did the TSOs agree at the Athens meeting?
A joint technical and commercial working group covering the interconnection-capacity framework, longer-term market outlook, tariff structure and infrastructure needs, and the preparation of an extended Memorandum of Understanding to include the new members.
Why does the corridor matter for European energy security?
Following the end of Russian pipeline transit through Ukraine, the Corridor provides an additional southern route for diversified gas supplies to reach Southeastern and Central European markets, including Ukraine. It can also facilitate access to Ukraine’s underground gas-storage system. What are the main commercial challenges for the corridor?
The participating operators have identified the Corridor’s tariff structure, interconnection-capacity framework, and infrastructure needs as areas requiring further assessment to improve commercial attractiveness. These issues will be examined by the new working group.
Disclaimer
This article is prepared by D.TRADING for general informational purposes only and does not constitute legal, financial, investment, accounting, tax, or regulatory advice. The information contained herein is based on publicly available sources and reflects opinion on the regulatory environment as of the publication date. D.TRADING makes no representations or warranties, express or implied, as to the accuracy, completeness, or timeliness of the information provided. This document is not an offer or solicitation to buy or sell any energy products, commodities, or financial instruments.
About D.TRADING
D.TRADING is a B2B energy trading company operating across Central, Eastern, and South-Eastern Europe, with hubs in Baar (Switzerland), Zagreb (Croatia), Amsterdam (Netherlands), and Kyiv (Ukraine).
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