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The Utility Regulator’s decision on biomethane modifications to gas licences

Energy, Infrastructure & Natural Resources - Belfast

The Utility Regulator’s decision on biomethane modifications to gas licences

Wed 22 Apr 2026

2 min read

Interest in Northern Ireland’s biomethane sector has grown in recent years, particularly following the first injection site at Granville Eco Park becoming operational in November 2023. Historically, the gas network has relied almost entirely on imports from Great Britain and the Republic of Ireland, with existing gas conveyance licences being drafted on that basis, meaning they did not adequately support the injection of locally produced renewable gas.

Against a backdrop of ongoing biomethane policy developments at the Department for the Economy and increased engagement from developers and network operators the Utility Regulator (UR) consulted in August 2025 on the regulatory changes required to accommodate this emerging market. The consultation attracted responses from the following six industry stakeholders: SGN Evolve Network Ltd, Kinecx Energy Limited, Phoenix Energy Group Ltd, Mutual Energy Limited, GNI (UK) Limited and GMO NI. On 31 March 2026, following consideration of these responses, the UR published its decision to modify gas conveyance licences with the aim of establishing a more robust and modern regulatory framework to facilitate renewable gas entry to the network while retaining flexibility for future changes to Northern Ireland’s gas system.

Summary of the decision

The decision introduces detailed yet important changes across all gas conveyance licences which enhance the clarity on the different types of connections available and the applicable arrangements for charging for and making of such connections. Several technical amendments to the licences have been confirmed including simplification of definitions, structural changes and updating technical terms. The modifications are designed to minimise the duplication of information and associated risk of inconsistencies between the newly introduced Calorific Value Management Statement and other documents. They also aim to enhance the robustness, accuracy and consistency of licence drafting.

Impact of the decision

In general terms, the UR’s decision strengthens and modernises the gas regulatory framework in Northern Ireland to reflect the reality that gas can now enter the network from local renewable sources as well as traditional interconnectors such as Scotland and the Republic of Ireland. By embedding biomethane specific provisions directly into gas conveyance licences, the decision provides regulatory certainty, improves transparency and ensures that renewable gas can be integrated into the network in a controlled and consumer focused manner.

The changes will have direct implications for both industry and consumers. For producers, the decision by the UR creates transparency in processing guidance and gaining access to the network, helping to speed up investment in renewable gas projects. The changes also introduce new requirements to action, requiring operators to update their methods of connection charging and the Gas Delivery Facility (GDF) processes. For consumers, the UR’s decision highlights that the changes will safeguard interests around billing and establish conditions for greater access to renewable gas options in the future, subsequently reducing the need for fossil fuels in Northern Ireland.

Next steps

The licence modifications will take effect from 27 May 2026, giving operators time to implement the revised requirements. This will involve preparing and, where required, seeking approval for updated method statements covering GDF processes, charging principles and, when directed by the UR, calorific value management arrangements. As the biomethane sector continues to grow, further licence adjustments may be needed to reflect future policy developments, but this decision represents a foundational step in enabling renewable gas deployment across Northern Ireland’s energy networks. The modifications directly align with the Northern Ireland Executive’s aim of transitioning to a net zero system by 2050 by facilitating the injection of renewable gas into the local network.

For more information, please contact your usual ALG Energy, Infrastructure & Natural Resources team contact.

Date published: 22 April 2026

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