Brussels (Brussels Morning Newspaper) – The European Union is exploring options to simplify compliance for U.S. gas exports with its methane emissions regulations, aiming to prevent a trade conflict with U.S. President Donald Trump, Reuters reported.
Trump has repeatedly stated that the EU ought to purchase more American oil and gas to reduce its trade surplus with the United States. European Commission President Ursula von der Leyen has said the EU could increase U.S. LNG purchases, as the bloc seeks to quit Russian gas by 2027.
Will U.S. gas get a free pass?
As reported, the European Commission is preparing its proposal for trade talks with the United States in an effort to sidestep Trump’s proposed tariffs, as both parties indicate that energy might be included in a wider trade agreement.
The Commission is considering flexible applications of EU methane rules as part of the energy options being discussed to support trade negotiations with the U.S., which could be advantageous for U.S. LNG exporters, according to sources.
What role will energy play in EU-U.S. trade talks?
The goal is to strengthen the overall law while implementing technical rules that allow U.S. exporters to be recognized as adhering to “equivalent” methane regulations like those of the EU, thus ensuring automatic compliance with EU law, they stated.
Experts suggest that Trump’s intention to eliminate U.S. regulations mandating gas producers report their methane emissions may complicate matters, as it would pose challenges for the EU in justifying automatic compliance for U.S. companies.
“The Commission has an ongoing dialogue with industry on all relevant matters related to our legislation,”
The spokesperson stated.
Can EU ease methane rules without weakening climate goals
Methane is a powerful greenhouse gas and the second-biggest cause of climate change after carbon dioxide emissions. Starting this year, the EU requires importers of oil and gas to Europe to monitor and report the methane emissions associated with those imports.
The EU methane law may provide U.S. LNG an edge compared to gas from suppliers with greater methane emissions like Russia and Algeria. However, U.S. exporters caution that complying with the law will be challenging because the decentralized structure of the U.S. gas industry complicates tracking methane emissions throughout their supply chains; one LNG shipment could consist of mixed sources from various gas fields.
Beginning in 2027, EU law will require foreign suppliers to adhere to methane rules equivalent to those of the EU in order to sign new contracts with European buyers. Last month, the European Commission hosted an online meeting with U.S. LNG companies to address their concerns regarding this law.
The U.S. has emerged as the EU’s leading LNG supplier, significantly increasing shipments as Europe sought to substitute Russian gas after Russia’s invasion of Ukraine in 2022. Last year, the U.S. accounted for 45% of the EU’s LNG imports, contributing to 16.5% of the total gas and LNG imports into the EU.
