Transgaz, the Romanian gas transmission system operator, has signed a memorandum of understanding with the U.S. company Argent LNG, which provides for the possibility of investing in the construction of a large LNG terminal in Louisiana.
The project will have a capacity of 25 million metric tons of LNG per year, or approximately 35 billion cubic meters of gas. The first deliveries are expected in 2030.
One of the main goals is to establish a long-term supply route for American gas through Romania to Moldova and Ukraine, and further on to Hungary, Austria, the Czech Republic, Slovakia, and Germany.
The project is intended to strengthen the so-called Vertical Gas Corridor, which is gradually becoming one of the key routes for supplying non-Russian gas to Central and Eastern Europe.
The corridor connects the gas transmission systems of Greece, Bulgaria, Romania, Hungary, Slovakia, Ukraine, and Moldova. It can be used to transport both Azerbaijani gas and LNG from the U.S., which arrives via the Revithoussa and Alexandroupolis terminals in Greece.
For the Balkans, the project is significant because it provides the region with another major source of gas and fosters additional competition among supply routes. The more American and other non-Russian LNG that flows through Greece and Romania, the more the gas infrastructure of all of Southeast Europe will change.
Moldova has already tested this route: U.S. LNG was delivered via Greece and then injected into Ukrainian underground storage facilities.
Transgaz also controls 75% of the Moldovan gas transmission system operator Westmoldtransgaz.
Due to reduced availability of liquefied natural gas (LNG) on the European market, Belgium switched entirely to importing this fuel from Russia in July, a move driven by supply disruptions and high gas prices, according to Bloomberg.
Total LNG shipments to Belgium in July fell by more than 40% compared to the same period last year. At the same time, the country purchased about 0.4 million metric tons of this fuel from Russia, although the volume of Russian imports was lower than in early 2026.
One reason for the increased role of Russian LNG was disruptions in fuel supplies from the Middle East due to shipping problems in the Strait of Hormuz. At the same time, most European buyers were postponing LNG purchases for winter stockpiles due to high gas prices.
“Europe received 16% more Russian LNG in the first half of 2026 compared to the same period the previous year, paying a total of 5.96 billion euros ($6.9 billion). The largest buyers were France, Belgium, and Spain,” the publication reports, citing data from the German nongovernmental organization Urgewald.
Low gas storage levels ahead of the winter season posed an additional challenge for Europe—they are the lowest for this period since records began in 2009.
According to Bloomberg, the last time Russia was the sole supplier of LNG to Belgium was in early 2021—before Russia’s full-scale invasion of Ukraine and after European economies had begun to recover from the COVID-19 pandemic.
According to Interfax-Ukraine, the relative level of gas reserves in European storage facilities has reached its lowest value on this date in recorded history.
Previously, the all-time low for storage levels at this time of year was recorded in 2021 (the pandemic impacted the industry’s capacity). However, since the start of the injection season, the 2026 trend has steadily been closing the gap with the previous record low.
The average level of gas reserves in Europe’s underground storage facilities reached 57.11% at the end of the gas day on August 1, according to data from Gas Infrastructure Europe (GIE), the association of European gas infrastructure operators. The reserve level on the same date in 2021 was slightly higher—57.28%. A day earlier, the figures were different: as of July 31, 2026, the level stood at 56.88% (higher), while as of July 31, 2021, it was 56.83% (lower).
Natural gas storage levels in Europe are a key indicator for the global gas market. The total capacity of the EU’s storage system is 109 billion cubic meters of active gas. Collectively, Europe has become the largest importer in the global LNG market. Gas Infrastructure Europe brings together operators active in the transportation and storage of natural gas, as well as LNG. The statistical database covers the operation of underground natural gas storage infrastructure since 2011, and the receipt and regasification of LNG since 2012. Gas days in the European gas industry are counted starting at 6:00 a.m. Central European Time (CET).
Renewable sources are expected to contribute to the EU’s energy balance. Since the beginning of August 2026, wind power in Europe has been meeting an average of 10% of electricity demand, according to the WindEurope association. A year ago, in August 2025, the contribution of wind power plants stood at 14%.
Europe is also actively importing liquefied natural gas (LNG). However, in August 2026, gas imports from abroad are down 7% compared to last year’s level. LNG imports in August 2026 may drop to 6.9 million metric tons.
The spot price for “next-day” delivery at the benchmark European TTF hub closed at $696 per 1,000 cubic meters on Friday, up from an average of $626 in July.
On Monday, July 6, 2026, the first annual auctions for the allocation of combined capacity at cross-border interconnection points with Hungary, Romania, and Moldova will take place, according to a statement by the Ukrainian Gas Transmission System Operator (OGTSU) on its website.
“Information regarding the conduct of combined auctions at cross-border interconnection points with Poland and Slovakia will be announced separately,” the company noted.
GTS Operator of Ukraine explained that combined capacity products allow for the booking of capacity on both sides of a cross-border interconnection point within a single auction and a single capacity product.
“The introduction of the combined capacity mechanism is the result of close coordination between OGTSU, operators of adjacent gas transmission systems, national regulators, and European institutions,” said Natalia Boiko, the company’s acting CEO.
The company asserts that the introduction of combined capacity products will contribute to the further integration of the Ukrainian natural gas market into the EU internal market, improve the efficiency of cross-border infrastructure use, develop cross-border natural gas trade, and strengthen the region’s energy security.
The application period for the allocation of annual capacity at domestic entry and exit points runs from June 29, 2026, through July 13, 2026, inclusive.
As previously reported, the National Commission for State Regulation of Energy and Public Utilities (NKREKP) adopted decisions at its June 23 meeting aimed at further integrating Ukraine’s gas market into the EU’s single natural gas market.
“The changes provide for the introduction of European rules for capacity allocation and tariff setting at cross-border interconnections of the gas transmission system,” the regulator stated.
In particular, the regulator has completed the regulatory steps to introduce joint auctions for capacity allocation at cross-border interconnections.
“This mechanism provides for the simultaneous allocation of capacity in the gas transmission systems of Ukraine and neighboring countries, which is in line with European practices for the functioning of the natural gas market,” the commission explained.
The new rules for allocating capacity at cross-border interconnections took effect in July 2026 and will apply to capacity used starting at the beginning of the new gas year—October 1, 2026.
To participate in auctions, customers of transportation services must enter into contracts not only with OGTSU but also with the operators of adjacent gas transmission systems in EU member states and the Republic of Moldova. A customer to whom combined capacity is allocated will have the right to transfer to another customer the right to submit nominations and renominations for such capacity.
AUCTION, ENERGY, GAS, INTEGRATION, ОГТСУ
The technical potential for methane recovery in Ukraine is 2.15–3.08 billion cubic meters per year, which is equivalent to 10–15% of the country’s total natural gas consumption, according to the study “Methane Emissions in Ukraine’s Energy Sector: Underestimated Challenges and Opportunities” by the Green Deal Ukraine (GDU) project, established by Helmholtz-Zentrum Berlin (HZB).
The study’s authors are GDU energy and climate specialist Alexander Zichener, GDU energy and climate expert Janez Kopac, and GDU energy expert Oleg Savitsky.
As they noted, at average European gas prices (~EUR360/1,000 cubic meters), this volume is worth EUR750–1,100 million annually, while the investments required to realize this potential total between EUR2.4 and EUR3.6 billion over 10 years, or EUR240–360 million per year.
“If we compare the figures, the economic benefit is clear: investing EUR240–360 million annually in emissions reduction will yield EUR750–1,100 million from the ‘captured’ gas,” the study’s authors emphasized.
They note that the issue of methane recovery is taking on particular importance ahead of Ukraine’s accession to the EU and in the context of post-war reconstruction: harmonizing national legislation with the requirements of Regulation (EU) 2024/1787 on methane emissions in the energy sector is mandatory for a candidate country and a member of the Energy Community. At the same time, reducing methane emissions is one of the fastest and most cost-effective climate measures available to Ukraine during the 2026–2045 period, since over a 20-year period (GWP20), methane is more than 80 times more potent than CO₂ as a greenhouse gas, and by a conservative estimate over a 100-year period (GWP100), it is 30 times more potent.
The study indicates that methane accounts for approximately 27% of Ukraine’s total greenhouse gas emissions (63 million tons of CO₂-eq. in 2023 based on GWP100), and over half of the country’s short-term climate impact based on GWP20. Nearly 71% of national methane emissions come from the energy sector.
For more details on the study and a link to it, see the column for the “Interfax-Ukraine” agency’s energy project “Energoreforma.”
British energy company BP announced the acquisition of a 40% stake in a production-sharing agreement covering six oil and gas exploration blocks in the Ustyurt region of Uzbekistan. This marks the company’s return to traditional energy investments.
BP had previously scaled back its exploration activities in the region in 2021 as part of a “green” energy strategy adopted under former CEO Bernard Looney, who committed to reducing oil and gas production by 40% by 2030.
Since then, the company has refocused on fossil fuels.
“We believe Uzbekistan has significant resource potential and view this as an opportunity to support the exploration and development of the country’s oil and gas resources,” said Joe Cristofoli.
BP, GAS, OIL, UZBEKISTAN
