The European Union is strengthening its energy diversification strategy with support for the development of a unique gas corridor linking Central and Eastern Europe to liquefied natural gas (LNG) infrastructure in the Mediterranean. This project, designed to reduce European dependence on Russian gas, could benefit from a significant participation of American LNG, crucial to guaranteeing the region’s energy security.
This gas corridor, developed in collaboration with several gas transmission network operators in Central and Eastern Europe, should make it possible to transport increased volumes of regasified LNG to markets that have until now been heavily dependent on Russian gas. The project aims to expand existing infrastructure to ensure a reliable supply of LNG and meet the region’s growing energy demand, particularly in a context where Russian gas deliveries could cease at the end of 2024.
A Project at the Heart of EU Energy Policy
This gas corridor is part of the objectives of the REPowerEU plan, through which the European Union undertakes to gradually reduce its consumption of fossil fuels from Russia by 2027. According to a European official involved in the project, this new infrastructure responds to a pressing need to reorganize gas flows throughout Eastern and Central Europe in anticipation of the end of the transit contract between Russia and Ukraine, scheduled for the end of 2024.
The project also builds on the cooperation of the High Level Group for Energy Connectivity in Central and South Eastern Europe (CESEC), an initiative established in 2015 to promote regional energy connectivity. This strategic collaboration between countries in the region has made it possible to coordinate cross-border projects to meet energy needs and reduce dependence on a single supplier.
The Strategic Role of American LNG
The importance of American LNG in the European energy transition has proven crucial since 2022, when the United States stepped up exports to Europe to fill the energy gap caused by reduced Russian flows. According to data from S&P Global Commodity Insights, Europe has imported approximately 149.72 million tonnes of US LNG since the start of 2022, making it a critical source for the EU’s energy balance.
With this new gas corridor, LNG infrastructure in the Mediterranean, such as the Alexandroupolis terminal in Greece, will play a key role in the transport and regulation of LNG imports into Europe. Venture Global, a US-based LNG export company, recently signed an agreement to use this terminal and provide 25% of its regasification capacity as early as 2025. Greece, along with other European countries from the East, will benefit directly from this supply of American gas, which offers an alternative to Russian sources.
Challenges and Opportunities for Energy Supply
LNG demand in Europe remains strong despite a reduction in Russian gas imports by pipeline. According to the European Commission, Russian gas imports by pipeline fell by 59% between the start of 2021 and 2024. Nevertheless, the LNG market continues to see a slight increase in the Russian share of EU gas imports , even if prices are rising sharply, due to the volatility of the global energy market.
With this gas corridor project, the European Union hopes to meet growing demand while limiting the impact of price fluctuations. The countries of Central and Eastern Europe, in particular, will be able to strengthen their energy resilience by diversifying their sources of supply, thus helping to stabilize their markets while reducing their dependence on Russia.
Related News :