HELLENiQ ENERGY issued an informational note on the VARDAX pipeline, a pipeline that was built in 2002 and is owned by the company VARDAX -in which HELLENiQ ENERGY holds 80% and the State of the Republic of North Macedonia 20%- in order to connect the Thessaloniki refineries with the then refinery of the company OKTA (a subsidiary of HELLENiQ ENERGY), in Skopje.
After setting out a brief history, the Greek listed company then provides an analysis of the benefits of the interconnection and the strategic importance it has.
According to the note, in 2013, as happened with several other relatively “simple” refineries in the region, which had been built under different criteria during the Cold War era, it was judged commercially unviable to continue operating OKTA as a refinery. Instead, it was decided to utilize OKTA’s facilities as a regional supply headquarters in the Western Balkans, with a change in the use of the pipeline, so that instead of crude it would transport the most modern and clean products.
It is recalled that the pipeline, with a length of 213 kilometers, which connects Thessaloniki with Skopje, was put into operation in 2002 for the transport of crude oil, while after 2013 investments were implemented for its conversion into a diesel transport infrastructure.
Although OKTA’s facilities were modified for the new operation and significant investments were made to modernize them, the pipeline remained idle because administrative and financial issues were pending.
The pipeline has a total length of approximately 213 kilometers, of which 70 km run within Greek territory. After its radical upgrade, it has the capacity to transport 2.5 million tons of crude oil and petroleum products (diesel, kerosene and gasoline) annually.
A new “vertical corridor” for the transport of energy products
For HELLENiQ ENERGY, the restoration and modernization of the VARDAX pipeline was a strategic choice, fully aligned with its vision to lead developments in SE Europe as a leading energy company, it emphasizes.
In this context, it implemented an extensive upgrade program for the pipeline, so that it could operate with modern safety specifications, digital monitoring and high operational efficiency.
The restart of the pipeline at the beginning of 2026, after 13 years of inactivity, marked a substantial milestone not only for HELLENiQ ENERGY, but also for Greece’s role as a regional pillar of energy security, economic stability and development in Southeastern Europe.
The start of operational activities took place after the completion and verification of all the required technical, operational and regulatory prerequisites.
Now, with Thessaloniki as the starting point, a “vertical energy corridor” has in practice been created, guaranteeing supply adequacy and connectivity with our neighboring states. It connects Greece with the Balkans and from there with the markets of central Europe.
It is estimated that the reopening of the pipeline will also contribute greatly to the energy shielding of the Balkans, making the Republic of North Macedonia an energy hub, with HELLENiQ ENERGY expanding its economic footprint in the country, the Greek company argues.
The strategic importance of VARDAX
The VARDAX pipeline has increased geopolitical weight for Greece’s role in the wider region and, at the same time, strengthens HELLENiQ ENERGY’s position as a key pillar of energy security in SE Europe, the company emphasizes.
It has already evolved into critical infrastructure linking the production base of the Greek refineries with the growing markets of the Western Balkans, contributing both to energy security and economic development.
The pipeline reduces the dependence of the wider Balkan region on limited sources and routes and ensures stable and reliable access to quality fuels.
From the beginning of the year until the end of August 2026, a total of nearly 400 million liters of diesel fuel (diesel) were transported through the pipeline, supplying primarily the market of the Republic of North Macedonia, but also neighboring markets, such as Kosovo and Serbia.
After the outbreak of the new crisis in the Persian Gulf, its operation contributed decisively to maintaining competitive conditions in the fuel market and to improving the availability of crude products that are in short supply internationally.
To further strengthen its role, additional investments have been launched in order to move increased quantities of refined products from the Thessaloniki Industrial Facilities.
At the same time, a rail supply line (track loading) is being created at OKTA’s facilities for the uninterrupted transport of crude to neighboring countries.
At the same time, it upgrades the Republic of North Macedonia into a regional hub and creates a reliable and resilient energy corridor for neighboring markets, according to the announcement.
“VARDAX is more than a fuel transport pipeline. It is a strategic energy infrastructure that connects markets, strengthens energy security, promotes cooperation between countries and creates new development prospects for the entire region.
It is an interconnection that marks a bridge of stability and overall strengthens the resilience of the European energy system, offering diversification of supply routes and sources”, HELLENiQ ENERGY notes.
Its importance for Thessaloniki and Northern Greece
“VARDAX is a specific example of infrastructure that strengthens the country’s connectivity and outward orientation.
It makes Thessaloniki’s role as an important energy hub for the region even stronger.
It is the only direct energy connection for the transport of petroleum products between Greece and the neighboring country.
It strengthens cross-border cooperation between the two states in a sector of strategic importance.
Northern Greece is strengthened as a key point of energy flows and infrastructure.
The project creates a development footprint, added value and a geoeconomic role for the region,” it is emphasized in the informational note.
Positive impact also for the Environment
In closing, HELLENiQ ENERGY points out the following:
“Fuel transport via pipeline is more efficient and environmentally more sustainable than alternative solutions.
It reduces road network congestion, improves road safety, limits the risk of accidents during the transport of hazardous loads, while reducing wear on road infrastructure and the related maintenance cost.
With the operation of the pipeline, the transport of fuels by tanker trucks has been drastically reduced, thus offering significant environmental relief, especially to the residents of Western Thessaloniki.
Based on the scheduled deliveries, the operation of the pipeline is estimated to have replaced approximately 12,108 tanker truck trips by the end of August 2026.
Particularly important is also the measurable environmental benefit. The reduction in emissions from road transport alone so far is estimated at 5,475 tons of CO₂”.