Ukraine’s energy authority has introduced a new gas import framework aimed at reducing the high transit costs associated with delivering gas through the TransBalkan pipeline from Greece. This move is part of broader efforts to stabilize the country’s energy supply after domestic gas output was severely impacted by a wave of Russian missile attacks earlier this year.
Currently, Ukraine receives gas supplies from Slovakia and Hungary. However, it has avoided utilizing the southern route through Greece due to the steep tariffs incurred as the gas must transit Bulgaria, Romania, and Moldova before reaching Ukrainian territory. These cumulative costs have made the southern route less attractive economically.
Despite these challenges, the TransBalkan corridor holds considerable promise for quickly addressing Ukraine’s energy demands. The major hurdle has been the uncompetitive pricing created by the standard tariffs imposed by each country along the route. In response, gas transit operators from the five countries involved have collaborated on a pricing model designed to lower costs and make use of the pipeline’s idle capacity.
The Ukrainian government estimates it must secure a minimum of 4 billion cubic meters of gas for the 2025–26 heating season. Independent experts believe the figure could be closer to 6.3 billion. In preparation, Ukraine’s national energy company Naftogaz has already initiated purchases, including a deal for 300 million cubic meters of American liquefied natural gas through Polish company Orlen.
While gas from Poland and Lithuania remains the most cost-effective, the Polish pipeline infrastructure limits the daily intake to about 7 million cubic meters, which is well below the minimum daily need of 25 million. To bridge this gap, Ukraine is turning to additional routes.
On May 27 alone, the country expects to bring in 20 million cubic meters of gas from Slovakia, Hungary, and Poland. Energy Minister German Galushchenko highlighted that Ukraine, having cut itself off from Russian energy imports, is now working closely with European partners to diversify its energy sources. He underscored the strategic value of the TransBalkan pipeline in this effort to enhance national energy security.
