Skopje government approves payment for fuel transport via VARDAX pipeline – gas interconnection with Greece also advancing
The government of Skopje has approved the final measure paving the way for the reopening of the Thessaloniki–Skopje oil pipeline, which has remained idle for 12 years.
At its latest session, the Skopje government decided to authorize the payment for services related to the transport of petroleum products through the VARDAX oil pipeline, effectively removing the last bureaucratic obstacle that had kept the line closed. The decision was officially published on Friday, November 7, in the Government Gazette of the Republic.
A major regional energy project revived
Originally built in 2002, the 213-kilometre pipeline connects the Thessaloniki refineries with the OKTA facilities in Skopje, a subsidiary of HELLENiQ ENERGY, which owns 80% of VARDAX, with the Skopje government holding the remaining 20%. Approximately 70 kilometres of the line run through Greek territory.
Following a comprehensive upgrade, the pipeline will now have the capacity to transport 2.5 million tonnes of crude oil and refined products per year, including diesel, kerosene, and gasoline. It is expected that most of its operation will focus on diesel transport, given the energy demands of the Western Balkans.
In 2013, the OKTA refinery ceased refining operations, as did several other small regional refineries that had become unprofitable after the Cold War era. Instead, OKTA was converted into a regional fuel supply hub, with the pipeline repurposed to carry refined products rather than crude oil.
Despite significant investment in modernization, the pipeline remained dormant for over a decade due to delays in regulatory approvals from the Skopje authorities.
Strengthening the Balkans’ energy security
Energy experts believe the reopening of the Thessaloniki–Skopje pipeline will strengthen energy security across the Balkans, positioning the Republic north of Macedonia as an energy transit hub and further expanding HELLENiQ ENERGY’s economic footprint in the region.
Natural gas interconnection also under construction
In parallel with the oil pipeline’s revival, construction is progressing on the Greece–Skopje natural gas interconnector, which will link the two countries’ gas networks.
The 123-kilometre project—56 km in Greece (from Nea Mesimvria, Thessaloniki, to Evzones) and 67 km within the Republic of Skopje (to Negotino)—will initially transport 1.5 billion cubic metres of gas per year, with the potential to double its capacity to 3 billion cubic metres annually.
The pipeline will also be equipped to transport green hydrogen in the future. Completion of the interconnector is expected by mid-2027, further integrating the region’s energy infrastructure and reducing dependence on external suppliers.
Together, the two projects mark a strategic step forward in Greek–Skopje energy cooperation, reinforcing Greece’s role as a vital energy gateway for Southeastern Europe.
