The European Union is preparing to loosen methane rules on imported oil and gas as the bloc scrambles to secure supply in the wake of the U.S.-Iran war.
Brussels is set to introduce “flexibilities” to its methane regulations, allowing importers to comply without tracing emissions data back to individual cargoes. Instead, countries exporting to the EU will only need to show that a sufficient share of their national production meets the standards, according to the European Commission.
The change comes ahead of a 2027 expansion of the EU’s methane law, which will apply to imported fossil fuels for the first time. Current rules already require EU-based producers to monitor emissions tied to flaring and venting, with strict reporting and repair obligations.
Fines under the original rules can run as high as 20% of annual turnover. The Commission is now looking to ease enforcement so cargoes aren’t held up or rerouted over compliance.
The move comes after pressure from member states, including Germany, along with warnings from the U.S. and industry that strict methane rules risk limiting gas flows into Europe while supply is already tight.
The numbers behind that concern are stark. Only about 7% of global oil and gas production currently meets voluntary methane reporting standards, according to Wood Mackenzie. Without adjustments, a large share of global supply would struggle to meet EU import requirements.
At the same time, Europe remains exposed to global gas flows. The disruption tied to the Iran conflict has tightened markets, raised prices, and increased competition for LNG cargoes.
The Commission maintains that methane regulation will remain in place, including requirements to monitor leaks and limit routine flaring. Methane is more than 80 times as potent as carbon dioxide over a 20-year period.
Implementation guidance will be issued to ensure consistency across member states. The priority, according to the Commission, is to avoid disrupting supply while maintaining the framework.
By Julianne Geiger for Oilprice.com
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