U.S. LNG Exporters Seek Delay to EU Methane Rules

U.S. LNG exporters are seeking a delay to the European Union’s methane emissions law, warning regulatory uncertainty is already affecting long-term gas supply agreements.

(Reuters) — U.S. gas exporters are asking Europe to delay the enforcement of a new methane emissions law until 2028, a top official of the national suppliers' lobby said on May 19, warning the regulatory risk is already holding back long‑term contracts with European customers.

"U.S. exporters are asking for targeted clarifications on the new methane law and more time," Senior Vice President of the Natural Gas Supply Association (NGSA) Charlie Riedl told Reuters on the sidelines of the Flame conference on gas and LNG in Amsterdam.

He said U.S. exporters were seeking a delay until at least January 2028 before the EU law is applied to imports.

The EU methane law requires that, from January ​2027, imported gas ​must comply with ⁠monitoring and verification rules equivalent to Europe's, or meet a voluntary industry standard known as "Oil and Gas Methane Partnership 2.0 ​level 5".

"I know that several of the companies the association represents have instructed their commercial staff not to sign long-term agreements ... because of the uncertainty," Riedl said.

The United States has become Europe's largest supplier of liquefied natural gas (LNG), helping to replace a sharp drop in Russian pipeline gas after Moscow's invasion of Ukraine in 2022.

Global gas markets are expected to remain tight after the Iran conflict disrupted up to a fifth of global LNG supply and delayed new capacity, according to the International Energy Agency.

Some companies have signed new supply deals with U.S. producers to bridge the gap resulting from the expected delay to new supply from Qatar due to the damage caused by the war.

In March, oil and gas companies, including majors based in Europe, urged Brussels to pause its methane emissions law, warning it could disrupt Europe's fuel ​imports.

The European Commission has offered companies more flexible compliance options but so far has declined to roll back the policy, a central ​pillar of its climate strategy.