Naftogaz to trade biomethane via its European subsidiary
Naftogaz Trading Europe AG, the European trading subsidiary of Ukraine’s state energy firm Naftogaz, has been certified to trade biomethane and is now offering offtake agreements to producers, according to Denys Kostiuk, Head of Business Development at Naftogaz, UkrAgroConsult reported.
“Developing the biomethane market is a key focus for us, as we already have the necessary infrastructure in place. Our European trading company has recently been certified to handle biomethane trading. We are now offering market-based offtake contracts to suppliers,” Kostiuk said.
Naftogaz is offering producers a full-service cooperation model — from connecting biogas plants to the grid to purchasing the final product.
Under current Ukrainian legislation, only producers are allowed to export biomethane. However, Naftogaz can purchase the gas through its European entity and resell it within the EU.
“This could be an attractive option for Ukrainian producers. Working with us is likely to be easier and more convenient than dealing with European traders — there's no need to hire additional staff or learn the intricacies of foreign trade,” Kostiuk added.
