Interview: Turning steel into security - SEEGAS and the push for real gas market integration
From crisis lessons to competitive markets, SEEGAS is proving that only integration can deliver liquidity, flexibility, and real security of supply.
With winter pressure increasing, LNG reshaping supply patterns, and the phase-out of Russian gas changing the fundamentals of the regional market, this week’s SEEGAS (South-East European Gas initiative) meeting in Vienna arrives at a turning point for Southeast and Eastern Europe.
The meeting's agenda zeroes in on what matters most: liquidity, interoperability, infrastructure, and resilience. In the lead-up to the meeting, we spoke with Predrag Grujičić, Head of Gas, and Gas Market Expert Peter Hlusek about SEEGAS’ evolving role in the region, how it has influenced developments in Ukraine and Moldova, and what needs to happen next to make real integration happen.
Why is SEEGAS needed, and why is this moment critical for the region?
SEEGAS brings regulators, operators, and market actors from across Southeast Europe and the wider Energy Community region and the EU together to make gas market integration a reality between the EU and Energy Community Contracting Parties. Established four years ago, the initiative complements CESEC (Central and South-Eastern Europe Energy Connectivity initiative)— which works at the political and strategic level on infrastructure and regulatory frameworks — by focusing on the practical, commercial dimension of gas market integration. SEEGAS is agile — it meets formally only once or twice a year, but communication continues organically between meetings whenever issues arise. Its strength lies in building trust and relationships between stakeholders, identifying barriers, and sharing best practices to advance concrete progress on market integration in a coordinated and responsive way.
SEEGAS is evolving into a trusted reference point for regional cooperation. As the European Union phases out Russian gas, LNG is becoming essential for security of supply — diversifying sources beyond pipeline import routes and increasing liquidity. With growing LNG capacity in Greece, Poland, the Baltics and Germany, flexibility and competition are increasing. But LNG only delivers value if access and capacity are coordinated transparently and efficiently. That requires dialogue and mutual understanding — exactly what SEEGAS enables.
Ukraine is facing an exceptionally difficult winter. What difference can SEEGAS make?
Ukraine has been one of the clearest examples of what regional cooperation under SEEGAS can deliver. The initiative, in the past, played a key role in supporting the use of Ukrainian storage and helping to build confidence around using Ukraine’s system capacity. SEEGAS, enables engagement directly with traders, TSOs, NRAs, and neighbouring countries, building confidence in the safety, reliability, and commercial viability of using Ukrainian storage.
The platform also helped channel best practices from EU stakeholders, supported coordination on technical and regulatory requirements, and facilitated matchmaking between storage capacity in Ukraine and market needs in neighbouring countries. This can contribute to increased storage bookings and help turn Ukraine’s system capacity into a regional resilience asset during critical periods.
This winter is fundamentally different from previous ones: Ukraine’s domestic production is largely out of operation, while the market structure has not yet adapted to this new reality. Ukraine needs to import significantly more gas than before, creating both affordability and security challenges. Again, SEEGAS can make a concrete difference here: helping identify regulatory and technical barriers, highlight why certain routes are inefficient, and collectively search for solutions. The country's storage and transmission capacity stabilise the entire region — by providing flexibility, balancing space, and diversified flow routes when they are needed most.
What lessons does Moldova offer about the impact of SEEGAS?
Moldova has made significant advances in gas market liberalisation under extremely challenging conditions and has demonstrated a clear institutional commitment to reform. The market opening process is underway, trading activity has begun, and structural changes are gradually reshaping the system — even though the transition is far from complete. SEEGAS will help strengthen it by building confidence, providing regional visibility, and creating a space to engage directly with market actors.
One very tangible outcome is the establishment of the Moldovan gas exchange, BRM East — being developed through cooperation with the Romanian exchange, an active participant in SEEGAS. This gives Moldova a practical tool for trading during the security crisis, supporting the shift away from a single dominant supplier toward a more open and competitive market environment. It is a clear example of how SEEGAS can catalyse progress that might otherwise have taken much longer.
What must SEEGAS focus on in the next stage to deliver real integration?
First, accelerating the implementation of network codes across borders. Network codes are essential for interoperability and for turning physical infrastructure into functioning market integration. Without them, capacity stays idle, and markets cannot react flexibly in times of crisis. We saw during the crisis triggered by the Russian flow cuts that integrated markets with functioning network codes were able to rapidly reroute gas and stabilise supply.
Under EU Regulation 1789/2024, Member States will be required, as of August 2026, to apply gas network codes at every border — including borders with third countries. In practice, this means Energy Community Contracting Parties. Until now, the application of these rules has been voluntary. But they can only deliver value if they are implemented consistently across borders. Once again, SEEGAS creates the space where countries can speak openly about what is working, what is blocking progress, and how to solve it together.
Second, and closely linked, is unlocking the full potential of the Trans-Balkan Pipeline. Today, the hardware exists, but without aligned rules and network codes, capacity remains largely unused. Regulatory alignment and technical readiness will directly increase liquidity, strengthen security of supply, and improve price stability, especially for Ukraine and the Western Balkans. Importantly, the Trans-Balkan Pipeline has the potential to move LNG northward and enable diversified supply routes in the context of the phase-out of Russian gas.
Third, SEEGAS can help coordinate the phase-out of Russian gas so that the transition does not create new vulnerabilities. Removing a dominant supplier risks removing a portion of liquidity from the region — particularly through markets like Hungary, which serve as major export routes for several Contracting Parties. And this impact will not be limited to countries still dependent on Russian gas; even those that have already denounced it, such as Moldova and Ukraine, will feel the effects through reduced liquidity and shifting flows across interconnected regional markets. SEEGAS must help translate this policy reality into practical, market-based solutions so that the phase-out strengthens rather than destabilises regional resilience.
Finally, SEEGAS is uniquely placed to increase market liquidity through deeper engagement with exchanges, traders and infrastructure operators— understanding what they need to trade more volumes, move gas faster for competitive tariffs, and build real competition. Liquidity is ultimately about more active participants, more options, and more flexibility: a market where buyers and sellers can find each other effectively. This liquidity will be possible if we succeed on the first two priorities: network code implementation and unlocking infrastructure like the Trans-Balkan Pipeline.
Together, these priorities form a practical roadmap to an integrated, competitive, and resilient regional market.
Ukraine is facing an exceptionally difficult winter. What difference can SEEGAS make?
Ukraine has been one of the clearest examples of what regional cooperation under SEEGAS can deliver. The initiative, in the past, played a key role in supporting the use of Ukrainian storage and helping to build confidence around using Ukraine’s system capacity. SEEGAS, enables engagement directly with traders, TSOs, NRAs, and neighbouring countries, building confidence in the safety, reliability, and commercial viability of using Ukrainian storage.
The platform also helped channel best practices from EU stakeholders, supported coordination on technical and regulatory requirements, and facilitated matchmaking between storage capacity in Ukraine and market needs in neighbouring countries. This can contribute to increased storage bookings and help turn Ukraine’s system capacity into a regional resilience asset during critical periods.
This winter is fundamentally different from previous ones: Ukraine’s domestic production is largely out of operation, while the market structure has not yet adapted to this new reality. Ukraine needs to import significantly more gas than before, creating both affordability and security challenges. Again, SEEGAS can make a concrete difference here: helping identify regulatory and technical barriers, highlight why certain routes are inefficient, and collectively search for solutions. The country's storage and transmission capacity stabilise the entire region — by providing flexibility, balancing space, and diversified flow routes when they are needed most.
What lessons does Moldova offer about the impact of SEEGAS?
Moldova has made significant advances in gas market liberalisation under extremely challenging conditions and has demonstrated a clear institutional commitment to reform. The market opening process is underway, trading activity has begun, and structural changes are gradually reshaping the system — even though the transition is far from complete. SEEGAS will help strengthen it by building confidence, providing regional visibility, and creating a space to engage directly with market actors.
One very tangible outcome is the establishment of the Moldovan gas exchange, BRM East — being developed through cooperation with the Romanian exchange, an active participant in SEEGAS. This gives Moldova a practical tool for trading during the security crisis, supporting the shift away from a single dominant supplier toward a more open and competitive market environment. It is a clear example of how SEEGAS can catalyse progress that might otherwise have taken much longer.
What must SEEGAS focus on in the next stage to deliver real integration?
First, accelerating the implementation of network codes across borders. Network codes are essential for interoperability and for turning physical infrastructure into functioning market integration. Without them, capacity stays idle, and markets cannot react flexibly in times of crisis. We saw during the crisis triggered by the Russian flow cuts that integrated markets with functioning network codes were able to rapidly reroute gas and stabilise supply.
Under EU Regulation 1789/2024, Member States will be required, as of August 2026, to apply gas network codes at every border — including borders with third countries. In practice, this means Energy Community Contracting Parties. Until now, application of these rules has been voluntary. But theycan only deliver value if they are implemented consistently across borders. Once again, SEEGAS creates the space where countries can speak openly about what is working, what is blocking progress, and how to solve it together.
Second, and closely linked, unlocking the full potential of the Trans-Balkan Pipeline. Today, the hardware exists, but without aligned rules and network codes, capacity remains largely unused. Regulatory alignment and technical readiness will directly increase liquidity, strengthen security of supply, and improve price stability, especially for Ukraine and the Western Balkans. Importantly, the Trans-Balkan Pipeline has the potential to move LNG northward and enable diversified supply routes in the context of the phase-out of Russian gas.
Third, SEEGAS can help coordinate the phase-out of Russian gas so that the transition does not create new vulnerabilities. Removing a dominant supplier risks removing a portion of liquidity from the region — particularly through markets like Hungary, which serve as major export routes for several Contracting Parties. And this impact will not be limited to countries still dependent on Russian gas; even those that have already denounced it, such as Moldova and Ukraine, will feel the effects through reduced liquidity and shifting flows across interconnected regional markets. SEEGAS must help translate this policy reality into practical, market-based solutions so that the phase-out strengthens rather than destabilises regional resilience.
Finally, SEEGAS is uniquely placed to increase market liquidity through deeper engagement with exchanges, traders and infrastructure operators— understanding what they need to trade more volumes, move gas faster for competitive tariffs, and build real competition. Liquidity is ultimately about more active participants, more options, and more flexibility: a market where buyers and sellers can find each other effectively. This liquidity will be possible if we succeed on the first two priorities: network code implementation and unlocking infrastructure like the Trans-Balkan Pipeline.
Together, these priorities form a practical roadmap to an integrated, competitive, and resilient regional market.