Greece bets on LNG corridor to power Europe's post-Russia energy future

Greece is advancing plans for a second floating FSRU, named FSRU Thrace, at Alexandroupolis and is promoting a Vertical Corridor to route LNG into central and eastern Europe as Brussels debates financing for gas infrastructure.

Greece is moving to strengthen its role in Europe's gas supply by proposing a second floating FSRU, FSRU Thrace, at Alexandroupolis and by promoting a broader LNG-to-Europe routing called the Vertical Corridor. The push comes as the EU accelerates a move away from Russian energy and planners forecast continued reliance on natural gas during the transition to cleaner energy. Greek authorities and the operator Gastrade have received environmental approval for the new unit, but the project faces significant funding needs. At the same time, the European Commission is under pressure to clarify whether and how it will finance gas infrastructure amid climate policy goals. Key details: - Greece plans a second floating storage and regasification unit (FSRU Thrace) near the existing Alexandroupolis FSRU, with environmental approval reported for the installation. - Projected construction costs are estimated at close to €600 million, and project managers say additional public or European financing would be needed. - The Vertical Corridor links the Alexandroupolis FSRU and the Revithoussa LNG terminal with pipelines into Bulgaria and Romania and can feed gas to markets including Ukraine, Hungary, Slovakia and Moldova. - Analysts and EU data cited in the article estimate central and eastern Europe may need about 35 billion cubic metres of extra gas per year by 2030 as Russian flows fall and demand recovers. - Major U.S. finance institutions, including EXIM and the U.S. International Development Finance Corporation, have been reported as expressing interest in financing the Alexandroupolis expansion, and a U.S. Department of Energy meeting on the Vertical Corridor is planned for late February with EU and regional representatives. - Brussels has taken a restrictive stance in recent years on financing new gas projects for climate reasons, and this position is the subject of active negotiations between member states, industry and EU institutions. Summary: The proposal for FSRU Thrace and the Vertical Corridor would position Greece as a transit and supply node for LNG into central and eastern Europe while facing a large financing gap. Reported meetings in Washington and ongoing negotiations in Brussels in 2026 are expected to shape whether and how funding for such gas infrastructure will proceed, but the outcome remains undetermined at this time.