The national gas transportation system operators in the mentioned countries, on the route of the so-called Vertical Corridor, have already applied discounts to their capacity reservation tariffs, the Romanian publication Profit.ro writes.
Politics vs commercial realism
But it is still too expensive compared to other European gas pipelines. Interestingly, the lower transit prices only led to a decrease in traders’ interest in capacity reservation auctions in December, January and February.
“The Greek government and the market agree that the Vertical Corridor cannot become competitive without subsidies as long as cheap Russian gas is on the market. It will remain less competitive than other routes to Ukraine even after Russian fuel is excluded from the market in 2027. The discussion from the previous auction is about how to reduce the cost of transporting gas through the Vertical Corridor, and next month’s auction (for March volumes) will be another test. The question is whether network operators can further reduce tariffs and, more broadly, how the overall cost can be reduced, as the market believes there is room for cost reduction in all directions,” Greek publication ekathimerini.com notes.
This also comes in the context of the EU’s pledge to buy $750 billion worth of energy from the US by 2029. A promise that is considered unrealistic and unattainable.
Joshua Volz, the US Department of Energy’s special envoy for global energy integration, reaffirmed the US administration’s commitment to the success of the Vertical Gas Corridor at the recent Athens 2026 Energy Summit, according to an analysis by Oikonomikos Tachydromos.
Volz also announced a ministerial meeting of all the project’s participating countries in Washington in late February.
“Currently, the Vertical Corridor is operating in a limited mode. Our goal is to move to natural gas flows,” he said, emphasizing that in addition to political will, commercial realism is a prerequisite for the project’s success.
The energy crisis in Europe has most clearly highlighted the geopolitical dimension of energy, Volz added.
“Moscow has used its energy power to exert political pressure on its partners, but the United States is in Europe to offer alternatives and options,” the U.S. official emphasized.
Despite differences on some issues between the allies, “the common desire for security, stability and energy abundance is what unites us on both sides of the Atlantic,” Volz added.
Speaking of the European Union’s strategic direction, the U.S. official noted that “European Commission President Ursula von der Leyen has made clear her intention to completely phase out Russian natural gas and oil” and that the United States is trying to “help European allies achieve that goal.”
Greece’s coordinating role
“Greece is at the center of one of the most important corridors for achieving these ambitious goals,” said Joshua Volz, noting that “the infrastructure here is excellent.” He made special mention of the Vertical Corridor, as well as the level of political commitment, which he described as unprecedented.
Volz emphasized that Greece has long been a reliable partner of the United States, and noted that the bilateral relationship has been further strengthened during the Trump administration.
The vertical corridor is not a new initiative and “the opportunities and challenges are already known,” but the project brings together countries that have not traditionally cooperated in this regard, which is also the biggest challenge, Volz noted.
“The design is the easy part, like how to put pipelines through mountains. The hard part is convincing the partners to commit to the project,” he said, emphasizing that if the project is not commercially viable, “it won’t be viable for anyone.”
The coordination needed, he said, stretches “from Greece to Ukraine,” and all participants must see the obvious economic benefits.
“This is not a charity project,” he said, reiterating that at present “the Corridor is up and running, but still in a hurry – and we want to get to the flows and inflows of gas.”
The role of the Vertical Corridor as a project of strategic importance for Greece, Europe and the United States was also emphasized by Environment and Energy Minister Stavros Papastavrou, who spoke at the same event.
Papastavrou characterized the Vertical Corridor as “a complex, demanding, historically unprecedented project of strategic importance for the stability of the region”.
“Never before has there been a single product that starts in Greece and reaches Ukraine,” the Greek minister emphasized, noting that five regulatory bodies are involved in the project and “the product must be attractive,” meaning that cooperation is crucial.
“The vertical corridor changes the situation that existed for decades,” and in terms of transit costs, the price has dropped from 9.90 to 7.50 – but this tariff “did not go down by itself, it took discussions and a concept of cooperation,” the Greek minister said.
“We have not been able to achieve the same price competitiveness for routes 2 and 3,” Papastavrou admitted.
The Greek minister also admitted that “this is a complex project and perseverance is required,” in a context in which “the regulation of full independence from Russian natural gas is now formalized in the EU.”
As he stated, “the success of the Vertical Corridor may be more important than NATO, as people in the Trump administration believe,” assuring that “for Europe and the United States, the success of the Vertical Corridor is the first priority.”
Regarding Greece, he emphasized that “this is a massive project of national importance, strategic in nature, and the country is becoming a gateway.”
As he said, “we need reliable partners – from 2027 we will no longer have Russian natural gas”, according to the EU decision, so “we need to replace it somehow”.
“Energy cooperation is a bridge between the US and Europe” and “Greece is part of this chain,” the Greek energy minister also said.
