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Nigeria, US, Qatar Urge EU To Change Methane Rules, Warn Of Supply Risk

Nigeria, US, Qatar Urge EU To Change Methane Rules, Warn Of Supply Risk

by NSO Admin
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Gas Flare Site (PHOTO BY OFFSHORE TECHNOLOGY FOCUS)

Major energy exporters, including Nigeria, the U.S., and Qatar Wednesday urged the European Union to rewrite planned methane emissions rules for oil and gas imports, ‌warning that the policy could disrupt fuel supplies to Europe.

From next year, the EU regulation will require methane monitoring and verification for fuel deliveries to the bloc.

The rules aim to curb leaks of the potent greenhouse gas but have drawn strong opposition from industry and overseas ​suppliers.

In an open letter to EU leaders, the energy ministers of the U.S., Qatar, Nigeria, and Algeria — all gas ​suppliers to Europe —called on the EU to pause the law and introduce “targeted amendments”, according to a Reuters report.

“Importers have already ⁠begun the process of purchasing oil and natural gas that will be stored for delivery in 2027, and as ​of now, there is no viable path to compliance with the regulation,” the letter said.

U.S. Energy Secretary Chris Wright told the Reuters Global Energy Forum in New York on Wednesday that the EU’s “crazy” methane regulations will make it impossible to import LNG from the U.S. and the other allies who signed ​the letter. He warned that this would put EU countries at risk.

“You’re going to have meaningful risk of blackouts ​or heating struggles this coming winter. There’s just no reason for that,” he said.

Speaking to reporters before the letter was published, EU Energy ‌Commissioner ⁠Dan Jorgensen said he was open to discussions on easing implementation but would not dilute the policy’s ambition.

“I will not reopen it. I’m very proud of our methane regulation,” Jorgensen said.

“We’ve also experienced a lot of pressure from international companies and countries like the U.S., and the message to them is the same. We will help as much as we can ​in being pragmatic, but we ​have to stand guard ⁠of the legislation,” Jorgensen said.

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Methane is the second-biggest contributor to global warming after carbon dioxide.

The commission has drafted plans to waive penalties for companies that breach the law, but has ​so far refused to rewrite the rules.

Eleven EU governments, including Italy, the Czech Republic, the Netherlands, ​and Poland, have separately ⁠asked Brussels to delay the rules by three years amid energy supply disruptions linked to the Iran war, according to a document reported by Reuters. EU energy ministers will discuss their request on Friday.

An oil and gas industry-backed study by Wood Mackenzie, published ⁠in March, ​said that nearly half of the EU’s gas imports could struggle to ​comply.

However, research released this week by Rystad for the Environmental Defense Fund said available compliant gas was three times the EU’s current imports.

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