The European Union is exploring adjustments to its methane emissions regulations to facilitate U.S. gas exports, aiming to prevent a potential trade conflict with the United States. According to a report by Reuters, the European Commission is considering technical rule changes that would allow U.S. LNG exporters to meet EU standards through ‘equivalent’ compliance measures.
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This development comes as the EU seeks to bolster its energy trade with the U.S. while reducing dependence on Russian gas by 2027. The U.S. currently supplies 45% of the EU’s LNG imports, accounting for 16.5% of the EU’s total gas and LNG imports, based on data from the IndexBox platform. The potential rule adjustments could provide U.S. LNG an edge over competitors from regions with higher methane emissions, such as Russia and Algeria.
However, the fragmented nature of the U.S. gas industry poses compliance challenges, as it complicates the tracking of methane emissions across diverse gas fields. The European Commission remains in discussions with U.S. LNG companies to address these concerns, with the aim of maintaining the integrity of EU’s methane regulations while fostering a favorable trade environment.