Gals Agro settles biomethane supply to EU, tripartite memorandum signed

Gals Agro agricultural holding, a Ukrainian Regional Gas Company (RGC) and a Dutch trader STX signed a memorandum of cooperation to market Ukraine's first biomethane to Europe, RGC reports on Facebook.

"The three companies have reached an agreement to facilitate the sale of biomethane through a virtual trading point (VTP). This will allow selling gas, which is physically supplied to Ukraine's gas distribution networks, to Europe," the statement reads.

All necessary documents and procedures are being prepared for the first transactions in the European market.

RGC has already started work on connecting the production facilities of Gals Agro to gas distribution networks in Chernihiv region. This company's biomethane plant will be the first in Ukraine to be linked up to gas networks, and biomethane will be sold to Europe.

The memorandum lays the foundation for the sale of biomethane to Europe for other producers of this biofuel.

"Now we sell about 10% of biomethane in Europe and plan to increase volumes. We were the first to sell biomethane from Norway, Sweden and Denmark. Now it is the turn for biomethane from Ukraine," said Bart Wesselink, Chief Financial and Risk Officer of STX Commodities.