Transgaz shares closed today’s session at 34.5 lei/unit, up 2.53% compared to the previous session. Since the beginning of the year, TGN shares have appreciated by 47.33%, the largest increase in the BET index.
The Vertical Corridor is an ultra-strategic investment objective for our region, which will contribute to the diversification of natural gas sources and increase the security of gas supply to the countries of Central and Eastern Europe and the Balkans, said Mr. Ion Sterian, General Director of Transgaz, who was present today in Bulgaria at the official inspection of the progress made by the Vertical Corridor in the area of the village of Mikrevo in the municipality of Strumyani (south-western Bulgaria). The event was attended by the Bulgarian Prime Minister, Rosen Jelyazkov, the Minister of Energy, Zhecho Stankov, the Hungarian Minister of Foreign Affairs, Peter Szijjártó, the Greek Minister of Environment and Energy, Stavros Papastavrou, as well as other officials. Mr. Ion Sterian was present on behalf of Romania.
The Vertical Gas Corridor is an extremely important objective and is supported by the governments of Romania, Greece, Bulgaria, the Republic of Moldova, Ukraine, Hungary and Slovakia.
Mr. Ion Sterian explained to us: “Today, near the town of Kulata, Bulgaria, construction works were inaugurated for a 700 mm pipeline with a length of 42 kilometers on the Bulgarian side, to increase the capacity of the Sidirokastro – Kulata interconnection from 2 billion as it is now, to about 3.5 billion cubic meters of gas per year.
At today’s event, the general director of Bulgartransgaz announced that, in July, work will begin on another 63 kilometers in order to increase capacity from Bulgaria to Romania through the Kardam – Negru Voda interconnection. We have the reception capacity on all three transit pipelines, of 25 billion.
The Vertical Corridor is my initiative for the transport of natural gas from south to north, bringing gas from the Caspian Sea area, Azerbaijan and liquefied natural gas (LNG) from terminals in Greece and Turkey, including American LNG and from other parts of the globe.”
Asked if the US still supports this investment, Mr. Ion Sterian said: “The US has publicly expressed its support for the Vertical Corridor. Last year, former US Undersecretary of State for Energy Resources, Jeffrey Pyatt, said that this Vertical Corridor is a visionary project for the energy development of the region.
The Vertical Corridor concept was conceived by us, at Transgaz, in 2014 – 2015, materializing with the first memorandum signed in Bucharest in July 2017, and then, in December 2019, in Brussels.
An important step was taken at the beginning of 2024, when a Memorandum of Understanding was signed by operators from the Republic of Moldova (Vestmoldtransgaz), Ukraine (GTSO) and Slovakia (Eustream), a memorandum that validated the intense cooperation developed by gas and LNG transmission system operators from Greece (DESFA, Gastrade), Bulgaria (ICGB, Bulgartrangaz), Romania (Transgaz), Hungary (FGSZ) and Slovakia (Eustream), following the meeting organized in Bucharest by Transgaz on January 11, 2023.
Regarding the benefits brought to Romania by this investment objective, Mr. Ion Sterian explained to us: “Romania will be able to benefit from imported gas, when it needs it, until the end of 2027, when the Neptun Deep perimeter will enter production. Personally, this year, I foresee a higher consumption compared to domestic production of between 800-1 billion cubic meters of gas. Let’s not forget that through the Anghel Saligny program, many UATs have been and are being connected to the gas transmission network, by building the distribution network, to increase the quality of life of citizens in these localities, but also to reduce carbon dioxide emissions by 50% compared to heating with firewood.
In addition, there are industrial investments that have come to connect to Transgaz, I mean industrial production, power plants, investments in various phases of execution. We have over 29 gas-fired power plants.
We hope that at the end of the year, in November-December, the Mintia Power Plant, with a capacity of 1,700 megawatts, will come to inject 1,090 megawatts of electricity into the national transmission system operated by Transelectrica. Here alone, at a capacity of 1,700 megawatts, we are talking about an equivalent of 2.5 billion cubic meters of gas. To this we add the KazMunaiGaz Power Plant in Constanța, an 80 megawatt power plant currently undergoing technological trials. We are also waiting for Romgaz to start up the Iernut Power Plant at the end of the year, we are talking about 600-700 million cubic meters of gas.
We must also add the power plants from Turceni and Ișalnița – about 1.5 billion cubic meters of gas, the one from Ișalnița of 860 megawatts, and from Turceni – 420 megawatts. I understand that they are in the tender phase.
I am sure that Romania will also have a vast industrialization program, considering the ideas promoted at the European Commission level, following the Draghi report, which will lead to an increase in gas consumption.
So, Romania’s gas consumption will increase. I believe it will double by the end of 2027, to about 18-20 billion cubic meters of gas. And we must be aware that onshore gas production is in natural decline, and the gas from the Black Sea is not enough. So we will need diversified sources of gas. I accompanied Minister Sebastian Burduja to Azerbaijan and Istanbul and received assurances that we will be supplied, if we need it. We also rely on the terminals in Greece for LNG from the US and other parts of the world.
The Vertical Gas Corridor is an extensive pipeline system, consisting of current and future infrastructure, including pipelines, liquefied natural gas (LNG) terminals and storage facilities.
In March 2024, former US Undersecretary of State for Energy Resources Jeffrey Pyatt said: “Using existing infrastructure from Greece to Ukraine, the Vertical Corridor will allow LNG imported through Greece to fill huge storage tanks in Ukraine, providing a new source of natural gas for Central Europe and the Western Balkans, thereby helping to reduce price volatility.” The US official stressed the importance of the project, which will support, as he said, the EU’s intention to completely disconnect from Russian natural gas by 2027.
