US gas exporters ask to push back EU methane regulation until 2028

• The EU methane law requires imported gas to comply with monitoring and verification standards starting January 2027, but U.S. exporters warn the uncertainty is blocking long-term supply agreements
• The United States became Europe's largest LNG supplier after helping replace Russian pipeline gas that dropped sharply following Moscow's 2022 invasion of Ukraine
• Global LNG markets remain tight with up to one-fifth of supply disrupted and new capacity delayed, while the EU Commission has so far declined to roll back the policy despite industry pressure

Summary: U.S. Gas Exporters Seek Delay on EU Methane Regulation

Key Development:

U.S. natural gas exporters are requesting the European Union postpone enforcement of its methane emissions law until at least January 2028, according to Charlie Riedl, Senior Vice President of the Natural Gas Supply Association (NGSA). The regulation is currently scheduled to take effect in January 2027.

Regulatory Requirements:

The EU methane law mandates that imported gas comply with monitoring and verification rules equivalent to European standards or meet the voluntary "Oil and Gas Methane Partnership 2.0 level 5" industry standard.

Market Impact:

The regulatory uncertainty is already affecting commercial activity. Riedl confirmed that several NGSA member companies have instructed their commercial teams not to sign long-term supply agreements with European customers due to compliance concerns. This poses significant risk to Europe's energy security at a critical time.

Market Context:

• The United States became Europe's largest LNG supplier after Russian pipeline gas supplies dropped sharply following Moscow's 2022 invasion of Ukraine
• Global gas markets remain tight, with recent disruptions affecting up to one-fifth of global LNG supply
• New capacity from Qatar has been delayed due to war-related damage, prompting some companies to sign bridging deals with U.S. producers

Industry Response:

In March, major oil and gas companies, including European-based firms, urged the EU to pause the methane law, warning of potential disruptions to fuel imports. While the European Commission has offered more flexible compliance options, it has refused to roll back the policy, which is central to its climate strategy.