Naftogaz Ukrainy’s European trading arm has secured official certification to engage in biomethane trading, a key step as the group ramps up efforts to grow its presence in the renewable gas sector.
Speaking at the European Business Association’s Energy Day 2025 in Kyiv, Denys Kostiuk, Head of Business Development at Naftogaz, highlighted the company’s commitment to developing the biomethane market, backed by its existing infrastructure and technical capabilities.
“We view biomethane as a major strategic direction,” Kostiuk stated. “Our European subsidiary, Naftogaz Trading Europe AG, has now been certified for biomethane trading. We are actively offering offtake contracts to producers on competitive market terms.”
Kostiuk explained that Naftogaz is positioned to provide a full-service offering for biomethane producers - from plant connection to pipeline networks, to the direct purchase of output.
“Our goal is to encourage private sector investment in biomethane production,” he said. “We have the infrastructure to facilitate rapid, high-quality connections and can support both the storage and transportation of biomethane. We’re ready to purchase gas at terms comparable to European buyers.”
Due to current Ukrainian legislation, only producers can export biomethane. However, Kostiuk noted that Naftogaz can purchase biomethane domestically through its European trading company, which then sells into EU markets. This, he suggested, simplifies the process for local producers.
“Working with us is more straightforward than dealing directly with European buyers. There’s no need to build new sales teams or navigate complex foreign market rules,” he added.
To support this push, a dedicated biomethane service centre has been established under Gas Distribution Networks of Ukraine LLC, designed to assist producers with technical and operational needs.
According to the Bioenergy Association of Ukraine, the country currently has four operational biomethane plants, including one producing bio-LNG (liquefied natural gas). Three additional plants are expected to come online in 2025, one of which will also produce bio-LNG. Ukrainian biomethane exports began in February 2025.
Naftogaz’s certification represents a strategic move to integrate Ukrainian-produced biomethane into the wider European renewable gas market and to position the company as a key facilitator of clean energy trade across borders.
Naftogaz’s European trader gains biomethane certification
