NEURC intends to cut norms for molar oxygen fraction in natural gas to develop Ukraine’s biomethane market
The National Energy and Utilities Regulatory Commission (NEURC) has published a draft resolution on reducing the requirements for the molar fraction of oxygen in natural gas from 0.02 mol. percent to 0.2 mol. percent – for biogas access to the gas transmission system (GTS) and up to 1.0 mol. percent – for biogas access to gas distribution systems (GDS).
By this resolution, the regulator intends to make appropriate changes to the Gas Transmission System Code and the Code of Gas Distribution Systems.
The message on the NEURC website stated: "The amendments to the GTS and GDS codes proposed by the draft resolution are aimed at stimulating the development of the biomethane market in Ukraine and expanding opportunities for biogas access to the gas transmission and gas distribution systems, which will lead to strengthening the energy independence of Ukraine."
As the commission said, in accordance with the GTS Code and the GDS Code, the access of subjects of the natural gas market, including producers of biogas or other types of gas from alternative sources to the GTS and GDS, is carried out on the principles of ensuring equal access rights, provided that biogas or other types of gas from alternative sources, in terms of their physical and chemical characteristics, comply with natural gas standards and the requirements of these codes.
The commission said: "It should be noted that the NEURC received letters from the Ministry of Energy of Ukraine and GTS Operator of Ukraine LLC about the need to amend the provisions of the GTS Code and the GDS Code, since the requirements they set for the physical and chemical parameters of natural gas do not create sufficient incentives for biogas producers and potential investors for the development of the biogas market in Ukraine due to the significant costs of biogas purification,"
As reported, the reduction of requirements for the molar fraction of oxygen in natural gas, together with the approval of the procedure for the functioning of the biomethane registry and the mechanism for providing guarantees of the origin of biomethane, are two key conditions for the development of the biomethane market in Ukraine.
By this resolution, the regulator intends to make appropriate changes to the Gas Transmission System Code and the Code of Gas Distribution Systems.
The message on the NEURC website stated: "The amendments to the GTS and GDS codes proposed by the draft resolution are aimed at stimulating the development of the biomethane market in Ukraine and expanding opportunities for biogas access to the gas transmission and gas distribution systems, which will lead to strengthening the energy independence of Ukraine."
As the commission said, in accordance with the GTS Code and the GDS Code, the access of subjects of the natural gas market, including producers of biogas or other types of gas from alternative sources to the GTS and GDS, is carried out on the principles of ensuring equal access rights, provided that biogas or other types of gas from alternative sources, in terms of their physical and chemical characteristics, comply with natural gas standards and the requirements of these codes.
The commission said: "It should be noted that the NEURC received letters from the Ministry of Energy of Ukraine and GTS Operator of Ukraine LLC about the need to amend the provisions of the GTS Code and the GDS Code, since the requirements they set for the physical and chemical parameters of natural gas do not create sufficient incentives for biogas producers and potential investors for the development of the biogas market in Ukraine due to the significant costs of biogas purification,"
As reported, the reduction of requirements for the molar fraction of oxygen in natural gas, together with the approval of the procedure for the functioning of the biomethane registry and the mechanism for providing guarantees of the origin of biomethane, are two key conditions for the development of the biomethane market in Ukraine.
