EU Considers Lifting Methane Requirements for U.S. LNG

Irina Slav, a writer for Oilprice.com with extensive experience in the oil and gas industry, reported that the European Union is contemplating adjustments to its methane emissions regulation to boost LNG imports from the United States. Unnamed sources revealed to Reuters that the aim is to implement “equivalent” methane standards for U.S. liquefied natural gas exports to the EU without compromising the overall regulation. The Biden administration’s push for U.S. energy companies to invest in methane emission monitoring and control has put producers in a favorable position. The EU’s methane regulation, approved by the European Parliament last year, requires LNG suppliers to certify that methane emissions from LNG production are tracked, monitored, and minimized. Qatar’s reaction to this regulation was to threaten to cease selling LNG to European buyers, limiting their options. With methane emission reporting by LNG suppliers to the EU set to begin next month, concerns about LNG supply security have outweighed emission fears in Brussels. While the industry generally views the methane regulation positively, some, like Ralf Dickgreber of France’s Engie, find compliance challenging.