Export of biomethane from Ukraine has been released
The issue of biomethane exports has finally been resolved. On September 09, 2024, Order No. 380 “On Amendments to Certain Regulatory Legal Acts of the Ministry of Finance of Ukraine on Customs Affairs” dated August 01, 2024 (the “Order”) came into force, which regulates the customs transportation of biomethane by pipeline. This is a long-awaited bylaw that has been lacking to fully unblock biomethane exports.
In accordance with the Order, the volumes of biomethane transported across the customs border of Ukraine by pipeline are allowed to cross the customs border on the basis of:
- a periodic customs declaration;
- a certificate of compliance with biomethane sustainability criteria;
- documents confirming the connection of the biomethane producer to the gas transportation or gas distribution system;
- an act of acceptance and transfer of biomethane produced – a document containing data on the volume of biomethane produced in energy units and volume units, signed by the biomethane producer and the operator of the gas distribution system or gas transmission system;
- an act of the Ukrainian gas storage operator on the movement of biomethane in gas storage facilities, which is accounted for in the customer’s storage account.
The volumes of biomethane transported across the customs border of Ukraine by pipeline transport shall be released for export under the customs regime of export on the basis of:
- an additional declaration indicating accurate information on the volumes of biomethane transported across the customs border of Ukraine under a periodic customs declaration;
- proof of sustainability of biomethane (Proof of Sustainability);
- general act of acceptance and transfer of natural gas by carriers – a document signed by the operators of the gas transmission system of Ukraine and a neighboring state, which contains data on the volume of biomethane transported across the customs border of Ukraine, indicating the conditional alphanumeric identification codes of senders and recipients (shipper pairs);
- certificate of the gas transmission system operator of Ukraine on the accounting of commercial biomethane supply and withdrawal of the customer (biomethane producer).
Thus, from now on, producers can export biomethane across the customs border of Ukraine by pipeline transport by providing the list of documents mentioned above. Thus, the procedure for exporting biomethane from Ukraine is now regulated and operational.
However, the sector is still waiting for a number of important events: the entry into force of the decision of the Cabinet of Ministers of Ukraine on the accession of the biomethane register to the European Union database and the recognition by the European Union of the guarantees of origin of biomethane issued in Ukraine. The adoption of these decisions will open up the possibility for producers to confirm the quality of biomethane, which will increase their competitiveness in the EU market.
We believe that these changes will have an extremely positive effect and send a signal to investors to increase the volume of investment and implementation of biomethane projects in Ukraine, taking into account best practices and advanced technologies.
Sergiy Oberkovych
Senior Partner, Attorney at law
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