EU delays methane rules on oil and gas imports for a year

EU Postpones Methane Emissions Rules for Oil and Gas Imports Until 2028

Overview of the EU Methane Emissions Regulation Delay

Background and Initial Proposal

BRUSSELS, Oct 14 (Reuters) - The European Commission proposed a one-year delay to the EU's methane emissions rules for oil and gas imports on Wednesday, after pressure from governments including France and the United States.

The rules, due to take effect on January 1, ​2027, would have required foreign oil and gas suppliers to the EU to monitor and ​report methane, a potent greenhouse gas.

Revised Timeline and Compliance Requirements

Under the proposed changes, importers of oil and gas would have until 31 May 2029 to prove that their oil, gas and coal imports during 2028 complied with methane monitoring and reporting rules equivalent to those of the EU - meaning that their foreign suppliers of these fuels would need to provide the information.

"This one-year postponement of the import-related provisions is designed to help avoid additional pressures on the security of supply of imported fossil fuels in the current geopolitical context," the Commission said in a statement.

Significance of Methane Emissions

Methane is the second-largest contributor to climate change, after carbon dioxide.

Purpose of the EU Law

The world-first EU law was designed to tackle those emissions, which leach into the atmosphere from leaky oil and gas infrastructure around the world. But the law has ​faced growing political pressure after the Iran war disrupted global energy supplies and heightened concerns about fuel availability this winter.

International and Industry Reactions

Concerns from the United States and Oil Majors

The United States, Europe's biggest liquefied natural gas supplier, warned the EU in June that the methane law could disrupt fuel deliveries, a stance backed by ‌companies including oil ⁠major ExxonMobil.

Political Pressure from EU Member States

The Commission moved ahead with the delay after French ​President Emmanuel Macron last month wrote to European Commission President Ursula von der Leyen to request it, and warn the rules could create legal risks for Europe's fuel importers.

Readiness of Foreign Suppliers

Those seeking a delay say that foreign oil and gas companies are not ready to comply with the EU rules and would avoid sending LNG cargoes to Europe because of the risk of fines or legal issues.

Next Steps and Ongoing Negotiations

EU countries and the European Parliament must negotiate and approve the delay.

Potential for Further Delays

Some EU lawmakers and countries, including Czechia and Italy, have demanded a longer three-year delay and may attempt to win this in the final negotiations.

(Reporting by Kate Abnett, Editing by Charlotte Van Campenhout and Louise Heavens)