DESFA auction details for Sidirokastro capacity
The first annual capacity auction under the upgraded Vertical Gas Corridor is expected to signal commercial interest in the project, with Greece’s gas transmission operator DESFA and market participants looking for strong demand after reductions in transportation fees. The auction is scheduled for 6 July. It will offer annual gas transport capacity at the Sidirokastro interconnection point between Greece and Bulgaria, with deliveries starting in October, marking the beginning of the new European gas year. According to DESFA, more than 30% of the nearly 100 GWh of available capacity could be booked in the first round.
Fee cuts, booking expectations and contract mix
An estimated 50% reduction in transit fees along the route is expected to affect booking outcomes, with market estimates linking a booking rate above 30% to annual volumes exceeding 1 billion cubic meters. Total flows are expected to be higher overall because a significant share of gas is likely to continue moving through short-term contracts alongside annual bookings. Market interest is expected primarily from buyers in Bulgaria, Romania, and Hungary. Ukraine is currently not seen as a major destination for corridor volumes.
LNG link at Alexandroupoli and planned fee changes
Further planned reductions in fees on the Romanian section are expected to strengthen regional utilization by improving competitiveness of the route. Attention is also focused on Venture Global, which controls around 25% of the regasification capacity at the Alexandroupoli LNG terminal. Any decision by the US LNG supplier to channel cargoes through the corridor could increase throughput and improve long-term utilization rates.
Greece-Bulgaria transport expansion ahead of winter season
Infrastructure expansion continues alongside the auction process. Transport capacity between Greece and Bulgaria is set to rise from 2.4 to 3.1 billion cubic meters per year starting 1 July. A further expansion to 3.6 billion cubic meters per year is already planned for the near future. Despite expectations ahead of the winter season, uncertainty remains due to intensifying competition between European and Asian buyers for US LNG cargoes, a factor that continues to support elevated spot gas prices across global markets.
