Trump administration, Qatar say EU methane rules threaten bloc’s energy security

The US, Qatar and other natural gas exporters are urging the European Union to ease some of its pending methane emissions rules, warning that the regulations could threaten the bloc’s energy security.

In a letter to European leaders, the countries asked for a “pragmatic approach” to clarifying the rules and adopting changes to allow importers to continue to obtain oil and gas needed by the EU.

The letter, also signed by Nigeria and Algeria, comes as the EU is under pressure to lower its persistently high energy prices and is set to boost gas imports from the US against the backdrop of the Middle East conflict.

Some European governments want to discuss the impact of the methane regulation on energy security at a meeting of the bloc’s energy ministers later this week.

In Brussels, the call to amend the methane rules is led by the Czech Republic and Slovakia, who want the European Commission to “consider as a matter of urgency all available options to reduce barriers to natural gas and crude oil imports”, including through targeted amendments to the regulations.

The commission, the EU’s regulatory arm, has so far declined to change the regulations, choosing instead to rely on recommendations to member states to limit fines for companies that are unable to comply with the rules on the powerful greenhouse gas.

Member states could also adopt a light-touch approach to monitoring, reporting and verifying sources of emissions.

In 2027, fossil fuel imports will have to be aligned with the EU’s rules designed to curb emissions of a greenhouse gas that is 80 times more powerful than carbon dioxide over its first two decades in the atmosphere.

By 2030, penalties will be issued for imports that are above a methane-intensity threshold. Under the existing rules, companies could be fined as much as 20 per cent of annual turnover.

For the push at the ministerial meeting to gather momentum, support from big European economies such as Germany will be needed, according to EU diplomats.

It is not clear what position the government in Berlin will take, with the Economy Ministry endorsing regulatory amendments and the Environment Ministry opting against weakening the law.

Mike Sommers, chief executive officer of the American Petroleum Institute lobbying group, told reporters on June 22 that the EU methane policy is flawed.

“We have sent delegations to the EU to work with them on this, and we’re dealing directly with the United States government to hopefully get a policy that makes sense for American producers,” Sommers said. BLOOMBERG