The recent visit of US Secretary of State Marco Rubio to Athens confirmed the interest of the US government in the energy sector in Greece. It is about how the US intends to expand the transport and distribution of its own liquefied gas to Europe through the so-called Vertical Corridor, commented to ARD Ino Afentouli, a foreign policy expert at the Athens think tank “Eliamep“.
The Vertical Corridor is a network of gas pipelines that should supply gas, for example, from Greece through Bulgaria and Romania to Ukraine. It is part of the EU's efforts to completely stop importing Russian gas by November 2027 at the latest, the German publication recalls.
Stopping Russian gas
The impending stoppage of Russian supplies has stirred up gas and shipping companies, as well as politicians throughout Southeast Europe. However, as critics warn, this dynamic could lead to the construction of new fossil fuel infrastructure that may not be necessary at all, writes ARD. For Greek Prime Minister Kyriakos Mitsotakis, however, something else is important - that Greece will become a “central player in Southeast Europe“ - after having been “on the periphery of the energy system“ until now.
The vertical corridor should make Greece an important entry point for liquefied natural gas (LNG), mainly from the United States. The country already has two LNG terminals, and four more are planned or in the planning process, although it is not yet clear which of them will actually be built.
New gas drilling - with the participation of American concerns
This development is due to the American energy offensive in the region. For the first time in decades, Greece intends to soon resume exploratory drilling for natural gas, and among the participants are the American oil companies “ExxonMobil“ and “Chevron“. The American ambassador to Greece, Kimberly Guilfoyle, has toured the region in recent months and campaigned for deals with American companies. She assures that the US is very interested in investing in Greece.
This does not only concern a single gas pipeline, explains energy expert Michalis Matioulakis of “Eliamep“: “This is about a whole system of gas pipelines, and existing infrastructure is currently being reconstructed and new sections of gas pipelines are being built, including connecting pipelines between the countries“.
According to him, this is a win-win situation for everyone, since at the moment European and American interests coincide. Matioulakis argues that natural gas will be used for a long time to come because the energy transition is not advanced enough and Europe needs energy security.
Is the project too ambitious?
Nikos Mandzaris, an analyst at the Greek think tank The Green Tank, has a different view of the Vertical Corridor - he considers it "too large and expensive". This is the main conclusion of an analysis published by The Green Tank in late September. It states that even if all natural gas demand along the Vertical Corridor route were to be met solely through LNG terminals in Greece, only one new terminal would be needed instead of the four currently planned.
Mandzaris predicts a long-term decline in gas demand and at the same time points to the high costs associated with LNG. The expert criticizes the Greek government's plans, calling them opaque and unclear, and notes the lack of a clear strategy. "These gas giants are improvising - not only the Greeks, but all the countries involved. That is why it is dangerous. This will also negatively affect consumers in general - not only in Greece, but everywhere else." The situation is particularly worrying due to the fact that these investments are difficult to coordinate with the EU's climate goals, ARD also points out.
The United States - a leading player in the market
Anna Maria Yaler-Makarevich from the International Institute for Energy Economics and Financial Analysis appeals to invest not in the Vertical Corridor, but in connecting regional electricity transmission networks. According to her, that is where the future lies.
She also points out another problem. In August and September, about 70 percent of all liquefied natural gas imports into the EU came from the United States. The fear is that instead of diversifying its sources, the EU is moving from one dependency (on Russia) to another - this time on the US. At least the Greek government does not see a problem in close cooperation with the US. Marco Rubio spoke in Athens about the historic alliance with Greece, and his Greek counterpart, Giorgos Gerapetritis, stated that never before has the Greek-American partnership been so strong and close.
Source: www.dw.com