Gas Purchase Agreements

Earn a steady income by exporting “green” gas.

You may generate a regular income by exporting biomethane gas straight to National Grid if you manage a plant that produces it as a by-product. Exporting your waste gas instead of burning it to generate energy is a significantly more efficient operation.

To inject your gas straight into the gas network, you’ll need to install technology to clean, purify, and pressurise it. This may be done with tried-and-true systems that can be put on any sort of biomethane-generating facility, from sewage treatment plants to anaerobic digestion and waste-recycling plants.

Niccolo Gas are offering Gas Purchasing Agreements (GPAs) for green gas, enabling your business to earn an income from the gas you export. We have the expertise and experience to develop a tailored gas purchase contract for your business. We have the correct GPA for you, whether you have a solo producing facility or are investing in a portfolio of gas to grid projects, whatever your goal for selling energy is. Our GPA solutions are designed to meet bank and lender standards while also giving you the flexibility and risk appetite you choose.

Why choose Gas Purchasing from Niccolo?

  • Earn regular income for the gas you’re already exporting,
  • Low-risk solution for your waste production (with no penalties or balancing charges),
  • Maximise the value of your biomethane output,
  • Access better rates through our self-supply contracts

It’s a win, win situation!

Here’s a little more about Gas Self-Supply

Quality of Gas

  •  The raw natural gas must be filtered to meet the quality requirements of the pipeline system and the markets.
  • The natural gas must be within a certain range of heating value, according to the norms (caloric value)
  • Be delivered at or above a specific hydrocarbon dew point temperature (below which some of the gas’s hydrocarbons could condense at pipeline pressure, generating liquid slugs that could damage the pipeline).
  •  Be dehydrated of water vapour to prevent the production of methane hydrates within the gas processing facility or the sales gas transmission pipeline. •
  • Contain no more than trace amounts of components (such as mecury, hydrogen sulfide, carbon dioxide, mercaptans, and nitrogen) primarily to avoid damaging equipment in the gas processing plant or the pipeline transmission system

The Gas Sale Agreement

Negotiating a gas sale is fundamentally a risk management exercise and they necessitate knowledge of the ecosystem and the circumstances of the deal.

As a result, you must think about the following dramatis personae:

  • The Government
  •  The Purchaser
  •  The vehicle transporter
  • The ideal market
  •  The people who live in the host community

And the agreement should include the following:

  •  The technical issues involving the Seller, Buyer, Transporter, and the Buyer’s Agent.
  • Commercial difficulties [economics of gas and petroleum]
  • Policy and regulatory issues to consider
  • The jurisdiction’s macroeconomic issues
  • Considerations for financing [corporate, banking, and project finance]
  • Exogenic events [geopolitics/natural disasters/global macroeconomics]

As well as these key legal considerations:

  • Goods risk – Quantity [Depletion or Supply Contract? ACQs and DCQs]
  • Contract duration and renewal – Transfer of title and risk in the products
  • High-quality and fit-for-purpose products
  • Extenuating circumstances
  • Indemnification and redress
  • Petroleum law, tax law, arbitration law, foreign exchange regime, and specific laws on the issue should all be included.

Niccolo Gas will provide a safe, clear and communicative business arrangement within which you will have the freedom to negotiate terms that work for you on an individual basis. The arrangement is a mutually beneficially move which will aim to suffice the needs and utilise the skills of both parties

Get a Quote from Niccolo