EU member states urge Brussels to simplify gas import rules

Reuters has seen an unpublished document stating that European Union countries plan to put pressure on Brussels to simplify the EU’s methane emissions regulation. The regulation is raising concerns among European companies that imports of liquefied natural gas from the US could be suspended.

Since this year, the EU has required oil and natural gas importers to monitor and report methane emissions associated with imports as well. The aim is to identify leaks caused by transporting these energy commodities using existing infrastructure.

The outcome of Monday’s meeting of EU energy ministers was that governments are preparing to ask the European Commission to include the methane emissions regulation in its “simplification” effort, which aims to reduce bureaucracy for businesses.

The draft asked the Commission to urgently assess which EU energy legislation could be simplified “to reduce the administrative burden on member states, industry and citizens, such as the methane regulation, as it could affect cooperation with economic operators from non-EU countries”. Poland, which currently holds the EU presidency, is preparing the conclusions.

The EU approved the methane emissions regulation last May, but it is only attracting greater attention now, as the EU seeks to move completely away from Russian gas, which is expected to be replaced by liquefied natural gas (LNG), particularly from the US.

Both the US and Europe have indicated that purchases of US LNG could form part of a broader trade deal between the Union and the United States. US President Donald Trump has given the EU until 9 July to reach a deal and avert high tariffs.

Some European countries warn that the methane emissions regulation could disrupt gas supplies. US companies have voiced similar concerns. They believe that the fragmented nature of the industry makes it impossible to track emissions throughout the entire value chain back to specific gas wells. Environmental groups, however, argue that systems exist to digitally track gas throughout the value chain in line with EU requirements.

In a letter to US and EU officials this month, seen by Reuters, US industry group LNG Allies called for a trade deal ensuring that US gas exporters would be considered compliant with “equivalent” methane rules, such as those in the EU, and would therefore automatically meet the regulation.