U.S., Qatar Warn EU Methane Rules Could Threaten Gas Supplies
The United States, Qatar, Nigeria and Algeria are urging the European Union to revise its methane emissions regulation, warning the policy could disrupt future oil and natural gas supplies.
(P&GJ) — The United States, Qatar, Nigeria and Algeria are urging the European Union to delay and revise its planned methane emissions regulation, warning the policy could disrupt future oil and natural gas supplies and create compliance challenges for exporters serving the European market.
In a joint letter sent to European Commission, European Council and EU member state leaders, the four countries called for targeted amendments to the regulation, including a temporary "stop the clock" mechanism, protections for existing contracts and the suspension of penalties while compliance standards are finalized.
The ministers argued that many global suppliers will be unable to meet the regulation's methane monitoring, reporting and verification requirements under the current timeline, placing future fuel deliveries at risk.
The letter states, "Importers have already begun the process of purchasing oil and natural gas that will be stored for delivery in 2027, and as of now there is no viable path to compliance with the regulation."
The letter also cites an industry analysis that found much of the EU's imported oil and a significant share of its natural gas could be noncompliant when the regulation takes effect in January 2027, potentially affecting supply availability and energy prices.
"The EU faces a narrow window to make necessary changes to the EUMR," the ministers wrote, adding that "significant negative supply and price impacts are a certainty."
While acknowledging efforts by producers to reduce methane emissions, the four governments urged EU officials to adopt a more flexible implementation process that provides regulatory certainty for long-term energy contracts.
The ministers wrote that producers in their countries "have already made substantial progress and are spending significant capital to decrease methane emissions intensity" and intend to continue those efforts while supporting "responsible policies that enhance energy access and security throughout the EU."