US Gas Exporters Request Extension for EU Methane Law Enforcement to 2028
US Gas Exporters Seek Delay in EU Methane Law Implementation
By Francesca Landini and Marwa Rashad
Exporters' Request for Extension
AMSTERDAM, May 19 (Reuters) - U.S. gas exporters are asking Europe to delay the enforcement of a new methane emissions law until 2028, a top official of the national suppliers' lobby said on Tuesday, warning the regulatory risk is already holding back long‑term contracts with European customers.
"U.S. exporters are asking for targeted clarifications on the new methane law and more time," Senior Vice President of the Natural Gas Supply Association (NGSA) Charlie Riedl told Reuters on the sidelines of the Flame conference on gas and LNG in Amsterdam.
He said U.S. exporters were seeking a delay until at least January 2028 before the EU law is applied to imports.
Details of the EU Methane Law
The EU methane law requires that, from January 2027, imported gas must comply with monitoring and verification rules equivalent to Europe's, or meet a voluntary industry standard known as "Oil and Gas Methane Partnership 2.0 level 5".
Impact on Long-Term Contracts
"I know that several of the companies the association represents have instructed their commercial staff not to sign long-term agreements ... because of the uncertainty," Riedl said.
Global Gas Market Context
US Role in European Gas Supply
The United States has become Europe's largest supplier of liquefied natural gas (LNG), helping to replace a sharp drop in Russian pipeline gas after Moscow's invasion of Ukraine in 2022.
Market Tightness and Supply Disruptions
Global gas markets are expected to remain tight after the Iran conflict disrupted up to a fifth of global LNG supply and delayed new capacity, according to the International Energy Agency.
Some companies have signed new supply deals with U.S. producers to bridge the gap resulting from the expected delay to new supply from Qatar due to the damage caused by the war.
Industry and Regulatory Responses
Industry Concerns and Appeals
In March, oil and gas companies, including majors based in Europe, urged Brussels to pause its methane emissions law, warning it could disrupt Europe's fuel imports.
European Commission's Position
The European Commission has offered companies more flexible compliance options but so far has declined to roll back the policy, a central pillar of its climate strategy.
Reporting Credits
(Reporting by Francesca Landini in Amsterdam and Marwa Rashad in LondonEditing by Tomasz Janowski)
