US, Qatar Warn EU on Methane Rules, Citing Energy Supply Risks for Europe
Major Energy Exporters Urge Changes to EU Methane Emissions Policy
By Kate Abnett and Nichola Groom
June 24 (Reuters) - Major energy exporters the U.S. and Qatar urged the European Union on Wednesday to rewrite planned methane emissions rules for oil and gas imports, warning that the policy could disrupt fuel supplies to Europe.
From next year, the EU regulation will require methane monitoring and verification 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 overseas suppliers.
International Response to EU Methane Regulations
In an open letter to EU leaders, the energy ministers of the U.S., Qatar, Nigeria and Algeria — all gas suppliers to Europe —called on the EU to pause the law and introduce "targeted amendments."
"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 said.
A European Commission spokesperson did not immediately respond to a request for comment.
Concerns from EU Member States
SOME EU COUNTRIES SEEK DELAY
US Energy Secretary's Warning
U.S. Energy Secretary Chris Wright told the Reuters Global Energy Forum in New York on Wednesday that the EU's "crazy" methane regulations will make it impossible to import LNG from the U.S. and the other allies who signed the letter. He warned that this will put EU countries at risk.
"You're going to have meaningful risk of blackouts or heating struggles this coming winter. There's just no reason for that," he said.
EU's Stance on Methane Policy
Speaking to reporters before the letter was published, EU Energy Commissioner Dan Jorgensen said he was open to discussions on easing implementation but would not dilute the policy's ambition.
"I will not reopen it. I'm very proud of our methane regulation," Jorgensen said.
"We've also experienced a lot of pressure from international companies and countries like the U.S., and the message to them is the same. We will help as much as we can in being pragmatic, but we have to stand guard of the legislation," Jorgensen said.
Impact and Ongoing Debate
Methane is the second-biggest contributor to global warming after carbon dioxide.
The commission has drafted plans to waive penalties for companies that breach the law, but has so far refused to rewrite the rules.
Eleven EU governments including Italy, the Czech Republic, the Netherlands and Poland, have separately asked Brussels to delay the rules by three years amid energy supply disruptions linked to the Iran war, according to a document seen by Reuters. EU energy ministers will discuss their request on Friday.
Industry and Environmental Perspectives
An oil and gas industry-backed study by Wood Mackenzie, published in March, said that nearly half of the EU's gas imports could struggle to comply. However, research released this week by Rystad for the Environmental Defense Fund said available compliant gas was three times the EU's current imports.
(Reporting by Nichola Groom and Kate Abnett; additional reporting by Liz Hampton in New York. Editing by Mark Potter and Mark Porter)