BRUSSELS, April 21 (Reuters) – The European Union is exploring ways to ease its methane emissions rules for U.S. gas exports in an effort to prevent a potential trade dispute with the United States, according to three sources familiar with the matter.
The European Commission is working on its trade proposal to negotiate with the U.S., aiming to avert President Donald Trump’s planned tariffs. Both sides have indicated that energy could be a key part of any trade agreement. Trump has frequently urged the EU to purchase more U.S. oil and gas to reduce its trade surplus with America. European Commission President Ursula von der Leyen has suggested the EU could increase imports of U.S. liquefied natural gas (LNG) as part of its efforts to phase out Russian gas by 2027.
In this context, the Commission is considering adjusting how it applies its methane regulations to assist U.S. LNG exporters. The goal is to find ways to comply with EU rules without weakening the overall law. This could involve setting technical standards that allow U.S. exporters to be considered in compliance with EU methane regulations, thus avoiding the need for further scrutiny. However, details on how this might be implemented have not been provided.
This proposal could be complicated by Trump’s plan to roll back U.S. methane reporting regulations, which could make it more difficult for the EU to justify allowing U.S. companies to automatically meet its standards.
A spokesperson for the European Commission declined to comment on whether flexibilities in methane laws were being considered for U.S. LNG exporters. The spokesperson did, however, note that the Commission is in regular dialogue with industry stakeholders on all matters related to its legislation.
Methane is a potent greenhouse gas, second only to carbon dioxide in contributing to climate change. Since this year, the EU has required oil and gas importers to Europe to monitor and report methane emissions linked to their imports. The EU’s methane law could give U.S. LNG an advantage over gas from suppliers with higher methane emissions, such as Russia and Algeria.
However, U.S. exporters have expressed concerns about complying with the law, citing challenges in tracking methane emissions due to the fragmented nature of the U.S. gas industry. Because LNG shipments often contain a mix of gas from various sources, it is difficult to monitor emissions across the entire supply chain.
Starting in 2027, the EU law will require foreign suppliers to meet EU-equivalent methane rules to secure new contracts with European buyers.
The European Commission held an online meeting with U.S. LNG companies last month to address their concerns about the new regulations.
The U.S. is currently the EU’s largest LNG supplier, with deliveries increasing as Europe seeks alternatives to Russian gas following Russia’s invasion of Ukraine in 2022.
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