Unsuccessful First Auction for Natural Gas Delivery from Greece to Ukraine

The first auction held yesterday (May 29, 2025) to deliver natural gas from Greece to Ukraine via the Vertical Corridor concluded without success. This chain of pipelines and infrastructure starts from Greece’s LNG terminals and extends to Moldova and Ukraine. The latter has significant needs in order to fill its storage facilities ahead of the upcoming winter. Earlier this week, an agreement was finalized between the operators involved, including DESFA and Gastrade from Greece, Bulgartransgaz and ICGB from Bulgaria, Transgaz from Romania, FGSZ from Hungary, Eustream from Slovakia, VMTG from Moldova, and GTSOU from Ukraine. However, the initial auction failed to yield positive results as the market remained unresponsive, with no quantities committed through the pipelines. According to Argus reports, the final price offered during the auction was €7.98 per megawatt-hour of gas, which includes all costs from liquefaction in Greece to delivery at Ukrainian installations. Traders commenting on the matter noted that there was insufficient time to prepare, while regulatory concerns also arose regarding the compatibility of the entire concept with European regulations. Additionally, participation terms were restrictive, requiring interested parties to hold permits in all five countries the gas would pass through. Bulgarian authorities now plan to conduct a second auction soon, potentially addressing some issues encountered during the first attempt.