Germany Warns EU Methane Law Could Disrupt Jet Fuel Supply in Europe
By Kate Abnett and Friederike Heine
Germany's Concerns Over EU Methane Emissions Rules
BRUSSELS, June 26 (Reuters) - Europe's biggest gas market, Germany, joined mounting pushback against the EU's planned methane emissions rules for oil and gas imports on Friday, warning that the policy could disrupt jet fuel supplies already under pressure from the Iran war's energy shock.
Overview of the EU Methane Emissions Regulation
From next year, the European Union will require monitoring and verification of methane emissions for fuel deliveries to the bloc. The rules aim to curb leaks of the potent greenhouse gas but have drawn strong opposition from industry and suppliers including the U.S., which this week has warned that the law would hamper gas deliveries to Europe.
Potential Impact on German Fuel Imports
"As it stands, the methane regulation would prevent not only gas imports into Germany - LNG - but also petroleum products from being imported from 2027 onwards," German Economy Minister Katherina Reiche said ahead of an EU meeting of ministers on Friday.
EU Member States Seek Delay
The ministers will discuss a call by 12 other EU governments, including Italy, the Czech Republic and the Netherlands, to delay the rules by three years.
"We need at least a postponement or a suspension of the methane regulation so that the Federal Republic of Germany can reliably secure its supply of gas imports, as well as petroleum products such as kerosene," Reiche said.
Industry and Environmental Group Responses
Some energy analysts and environmental groups have disputed the claims that the EU law would limit fuel imports, and said ample supplies are available that can comply.
EU Commission's Position and Flexibility
In the face of opposition to the planned rules from some member states, the European Commission has drafted plans to waive penalties for companies that breach the rules.
EU energy commissioner Dan Jorgensen said on Friday that Brussels was willing to make it easier to implement the rules, but the law - a key pillar of the Commission's climate agenda - was already flexible enough and the EU would not rewrite it.
The Role of Methane in Global Warming
Methane is the second-biggest contributor to global warming behind carbon dioxide.
Jet Fuel Supply Challenges Amid Geopolitical Tensions
Jet fuel prices have surged as a result of the Iran war's closure of the Strait of Hormuz, a key shipping route for global oil supplies, prompting airlines to cut uneconomic flight routes.
Europe's Jet Fuel Sources
Imports from the Middle East typically cover about 20% of Europe's jet fuel demand.
Response to Supply Disruptions
Despite warnings from airlines of potential kerosene shortages, the EU has so far weathered the Iran war-induced disruption, with local refineries ramping up their kerosene output, and U.S. and Nigerian supplies increasing to help fill the gap.
(Reporting by Kate Abnett; Editing by Susan Fenton)
