The planned Vertical Gas Corridor continues to face setbacks, as the latest capacity auction for April passed without any bookings, reflecting weak market interest under current conditions.
This latest outcome adds to a series of unsuccessful rounds, with three of the past four auctions failing to attract participants since late last year. While individual tenders have been affected by varying factors, the repeated lack of interest suggests that expectations for the corridor have not aligned with actual market demand.
One of the key issues is pricing. Elevated natural gas costs in Europe, combined with relatively comfortable storage levels in Ukraine, have reduced the incentive for additional imports. Having already secured significant volumes earlier in the winter, the country appears less willing to commit to more expensive supply routes.
Questions are also emerging about the future structure of the project. It remains uncertain whether the current auction format will continue or transition toward longer-term booking products. Greek gas transmission network operator DESFA has emphasized the need for timely decisions, warning that delays could further discourage market participation.
Beyond short-term market conditions, broader concerns are weighing on the initiative. Limited clarity on regulatory support, insufficient visibility on investment commitments, and unresolved issues related to the gradual reduction of Russian gas flows are all contributing to skepticism among potential users.
At the same time, not all EU member states are fully backing the corridor, and discussions about alternative supply routes outside the project are reportedly gaining traction. Without clearer policy direction and stronger institutional support, the corridor’s prospects remain uncertain.
