Quick Summary: With the EU enforcing a phased ban on Russian gas imports—spot and short-term LNG halted soon after legislation, long-term LNG by January 2027, and pipeline gas by September/October 2027—Greece is capitalizing on its strategic location, two key LNG import terminals, and strong U.S. partnerships to position itself as the primary southern gateway for American liquefied natural gas (LNG) into southeastern and central Europe. The Vertical Corridor pipeline network, linking Greek facilities northward through Bulgaria, Romania, Moldova, and Ukraine, forms the backbone of this ambition, potentially reshaping regional energy flows.
For years, the Thrace region in northeastern Greece remained a peripheral corner of the continent—geopolitically distant and economically overlooked by much of Brussels. That is rapidly changing as multibillion-euro investments and policy shifts thrust it into the heart of Europe’s post-Russian energy architecture.
The driver is clear: the European Union is decisively cutting ties with Russian gas. Following Russia’s invasion of Ukraine, Moscow’s share of EU gas supplies plummeted from around 40% pre-2022 to just 13% by mid-2025. The bloc’s formal phaseout—finalized in early 2026—bans spot Russian LNG and short-term contracts shortly after entry into force, ends long-term LNG deals by January 1, 2027, and stops pipeline gas by autumn 2027. Replacing this volume requires reliable, large-scale alternatives, especially for vulnerable central and eastern European markets still adjusting to disrupted flows.
Greece offers itself as that reliable southern entry point.
Two Operational Terminals Powering the Push
Greece currently runs two major LNG facilities. The Revithoussa terminal, located on a small island west of Athens, dates to 1999 with expansions in 2018, offering regasification capacity of about 5.1–6.5 billion cubic meters (bcm) per year. It has seen strong booking demand, with nearly all slots reserved through 2040 by major Greek players like Metlen, DEPA, PPC, Enerwave, and Heron.
The newer Alexandroupolis FSRU—a floating storage and regasification unit—entered commercial service in October 2024, with a capacity of 5.5 bcm annually (equivalent to 50–55 standard LNG cargoes). Combined, these provide over 11–12 bcm/year of import capability, with much of the supply now originating from the U.S., which accounts for roughly 60% of EU LNG imports overall.
Regasified volumes from these terminals feed directly into the Vertical Corridor, a collaborative pipeline system assembled post-2022 using existing infrastructure. Coordinated by transmission operators from Greece (DESFA), Bulgaria (Bulgartransgaz), Romania (Transgaz), Moldova (VestMoldTransgaz), and Ukraine (GTSOU)—and extending potential reach to Hungary, Slovakia, Austria, and Italy via the Trans Adriatic Pipeline (TAP)—the corridor enables south-to-north flows. It includes dedicated monthly products for deliveries to Ukrainian storage, tariff reductions (e.g., 25–50% along segments), and ongoing expansions, such as Bulgarian looping works targeted for completion by October 2026 to boost capacity.
U.S. Backing and Strategic Alignment
The United States has actively supported this vision. U.S. LNG dominates Europe’s imports, and high-level engagements—including a late-February 2026 Washington meeting with energy ministers from central/eastern Europe, U.S. officials, and EU representatives—prioritized Vertical Corridor financing. Agencies like EXIM and the U.S. International Development Finance Corporation have signaled interest in backing a second Alexandroupolis FSRU, dubbed FSRU Thrace. Gastrade (operator of the existing Alexandroupolis unit) leads the €600 million project, which has secured Greek environmental approval and aims for operations around 2028 to align with full Russian gas phaseout.
This aligns with broader transatlantic energy ties, though recent U.S. tariff developments and debates over the Turnberry trade deal (involving massive EU energy purchases) have introduced uncertainties.
Challenges Ahead
Greece’s strategy faces hurdles. Analysts, including Chatham House, warn of risks from over-reliance on volatile global LNG markets—U.S. cargoes can divert to higher bidders—exposing the region to price swings. Declining European gas demand amid the energy transition could strand assets, as Revithoussa has historically run below full capacity.
The European Commission has historically hesitated on funding new fossil infrastructure due to climate goals, though pressure from member states and the need for bridge fuels is shifting views. Final decisions on EU co-financing in 2026 will be pivotal for expansions like FSRU Thrace.
Greece’s geographic edge—positioned between abundant U.S. supply and needy eastern markets—remains unmatched. Whether it solidifies as Europe’s enduring southern gas gateway or risks becoming an costly interim solution hinges on infrastructure utilization, financing outcomes, and the pace of the continent’s green shift in the coming year.