Energy infrastructure development in Romania and Bulgaria – A strategic necessity for the energy security of Central and Southeast Europe

Răzvan Munteanu, Adevărul, June 13, 2025

In the extremely unstable geopolitical context of recent years, marked by armed conflicts, sabotage of energy infrastructure, and the deliberate decoupling of Russian natural gas supplies to Europe, the need for a fundamental reconfiguration of gas supply routes is becoming evident and urgent.

The suspension of Russian gas transit through Ukraine, the shutdown of the Yamal-Europe pipeline, and the compromise of the Nord Stream pipelines have led to the collapse of the old traditional delivery routes, putting countries such as Slovakia, the Czech Republic, Hungary, Serbia, and Austria in difficulty. The only remaining functional route – TurkStream/Balkan Stream – crosses Bulgaria and has limited capacity, highlighting the vulnerability of the European energy system.

In this tense context, the joint initiative by Greece, Bulgaria, and Romania to create a “Vertical Gas Corridor” takes on vital strategic importance. This initiative, which has been under discussion since 2014 but was reactivated in earnest after the start of the war in Ukraine in 2022, proposes a complete reversal of the gas transport paradigm: instead of flowing from north to south, gas would flow from south to north—from ports and LNG terminals in Greece, through Bulgaria and Romania, to Hungary, Slovakia, Moldova, and Ukraine, and on to the rest of Central Europe.

The reorientation of energy flows is based on the use of existing infrastructure, such as the old Trans-Balkan pipeline, but requires massive investment in modernization, expansion, and interconnection between national systems. The Vertical Corridor project would essentially enable the transport of gas from alternative sources – the United States, Qatar, Egypt, Algeria, Azerbaijan – to regions that until recently depended almost exclusively on Russian gas.

Romania – Bulgaria: Why is (inter)connectivity needed?

Romania and Bulgaria – strategic pillars in Europe’s new energy map (?)

At the heart of this new energy architecture are Romania and Bulgaria, which are no longer just marginal transit countries, but would become the main pillars of the energy infrastructure of the whole of Central and Eastern Europe. Their geographical position, proximity to alternative gas sources (Greece, the Black Sea, Turkey) and the existence of already operational cross-border pipelines give them a key role in this new equation.

In order for this role to be fulfilled effectively, the following is necessary:

• Rapid development of interconnection networks between Bulgaria and Romania, which currently consist of only two points (Ruse-Giurgiu and Kardam-Negru Vodă) – insufficient to support a diversified and secure gas flow.
• Expansion of transport capacity through the modernization of existing pipelines and the construction of new ones, such as those proposed in the Oryahovo-Bechet or Svishtov-Zimnicea areas, which can be integrated into the European infrastructure.
• Exploitation of underground gas deposits in western Ukraine, which can serve as a strategic buffer for gas storage and redistribution in times of crisis or increased demand.

However, the project faces significant obstacles. The most important is the lack of clear and committed funding, both at European and transatlantic level. Although the project participants had hoped for generous co-financing from the European Commission, this support has not materialized to date. At the same time, expectations of US support through USAID or other funds have been drastically reduced with the change of administration in Washington and the new leadership’s intention to close the agency.

A second major obstacle is access to sufficient quantities of natural gas at fair prices, as spot markets impose unstable and often prohibitive prices, making it difficult to plan imports and reserve capacity in the long term.

However, with the collapse of the Assad regime in Syria, the idea of building a strategic gas pipeline between Qatar and Turkey, which would cross the Middle East and transport gas from the world’s largest gas field (South Pars/North Dome) to Europe, is back on the table. This route, together with resources from Azerbaijan, the Black Sea, the eastern Mediterranean (Israel, Cyprus) and Turkish LNG terminals, creates an emerging network of alternative sources, but requires a functional transport infrastructure to the heart of Europe. Romania and Bulgaria, as transit countries, are thus called upon to play an essential intermediary role between the source and the consumer.

An important advantage is that the investments required for the new interconnections are not exorbitant, given that the national networks in Bulgaria and Romania are already close to the border. Furthermore, co-financing from European funds remains a realistic option, given that energy diversification is a strategic priority at EU level.

Forecasts indicate that several international suppliers are already interested in reserving capacity at entry points in Bulgaria and exit points in Romania, which underlines the need to expand and modernize these points as soon as possible.

Transforming Romania and Bulgaria into an essential energy corridor is not only a geopolitical opportunity, but a strategic necessity in the context of a Europe that wants to free itself from its dependence on Russian gas. The Vertical Gas Corridor, projects such as the Qatar-Turkey pipeline, and the development of new interconnections can transform the region into a regional energy hub. However, these efforts require political will, strategic vision, and adequate funding. Without concrete and coordinated action, the opportunity may be lost—and Europe will remain vulnerable to future crises.

The Vertical Gas Corridor has the potential to fundamentally change the energy balance in Central and South-Eastern Europe. However, to move from a strategic concept to a functioning reality, a radical change in the way the countries involved work together is needed. Without aligned political priorities, a common governance structure, and priority treatment at the European level, the project risks failing exactly where other initiatives (such as Nabucco) have fallen: in regional disagreements, institutional slowness, and a lack of common vision.

Political will is therefore another challenge to the implementation of such a project. While Hungary maintains a privileged relationship with Russia, Greece is particularly interested in developing the LNG terminals in Alexandroupolis and Revithoussa, Bulgaria is marked by political instability and successive changes of government in Sofia, and Romania is currently prioritizing domestic projects such as gas exploitation in the Black Sea, paying relatively little attention to joint regional initiatives.

This whole picture shows that there’s no clear regional leader.

Without an entity or country to take the lead in coordinating this cross-border project politically and technically, the plan risks staying fragmented, slow, and inconsistent. In this context, Romania and Bulgaria are best placed—and naturally responsible—to take on this role of regional co-leaders.

Both countries are at the heart of the proposed corridor, being not only transit countries but also essential links between alternative gas sources (in Greece, Qatar, the US, Azerbaijan, etc.) and markets in Central Europe, such as Hungary, Slovakia, and Ukraine.

Moreover, the energy infrastructure of the Vertical Corridor cannot function without close and synchronized cooperation between Romania and Bulgaria. Each of them controls critical sections of the route—Bulgaria manages the interconnection points with Greece and takes over LNG flows from the south, while Romania must ensure the efficient transit of these volumes to the north and east, including to its own underground storage facilities.

In addition, the two countries have complementary capabilities. Romania has a well-developed underground storage system and an extensive domestic network, while Bulgaria is already in a position to integrate flows from the ICGB and Sidirokastro-Kulata. The simultaneous and balanced development of these networks can maximize the economic and technical efficiency of the corridor, reducing the need for massive investments and avoiding operational bottlenecks.

To turn this complementarity into a strategic advantage, a bilateral coordination mechanism between the two governments is needed, which could take the form of an intergovernmental council for energy and regional security, with a permanent technical secretariat to coordinate interconnection projects, pipeline investments, and joint applications for European funding. Such an entity would allow for the alignment of implementation schedules, the harmonization of technical standards, and the promotion of a unified vision vis-à-vis international partners.

At the same time, a common Romanian-Bulgarian voice in Brussels and in relations with international investors would carry much more weight than isolated efforts. Joint support for the project within EU initiatives (such as the Connecting Europe Facility or Projects of Common Interest – PCI) could ensure access to non-reimbursable funding and high-level political support. In addition, a joint promotional campaign – through regional forums, energy summits, and collaboration with strategic partners – could generate international visibility and credibility, attracting investment and external support.

Beyond the technical and financial components, close cooperation between Romania and Bulgaria would also be an example of responsible regional leadership. At a time when Southeast Europe is often perceived as vulnerable, dependent, or reactive, an active and visionary partnership between the two countries would send a clear signal that the region can generate strategic solutions, not just problems.

Romania and Bulgaria should therefore assume this role as co-leaders of the Vertical Gas Corridor. This is a rare geopolitical opportunity—not only to support Europe’s energy diversification, but also to strengthen their status within the European Union as mature regional actors capable of managing large-scale projects. Without this clear and coordinated commitment, the project risks remaining a promising initiative with no real impact.

Photo: (source: Pixabay, CC0)

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