Germany joins opponents of EU methane law, warns it could up-end jet fuel supply

• Germany's Economy Minister warned the methane regulation would prevent LNG and petroleum product imports from 2027, threatening the country's gas and kerosene supply security
• Twelve EU governments including Italy, Czech Republic, and Netherlands are seeking a three-year delay of the rules, while the Commission has drafted plans to waive penalties for companies that breach them
• Jet fuel prices have surged due to the Iran war's closure of the Strait of Hormuz, which typically supplies about 20% of Europe's jet fuel demand, adding urgency to supply concerns

Summary: Germany Opposes EU Methane Law Amid Jet Fuel Supply Concerns

Key Development: Germany has joined 12 other EU countries opposing the bloc's planned methane emissions monitoring rules for oil and gas imports, citing threats to energy security and jet fuel supplies.

Implementation Timeline: The EU regulations are scheduled to begin in 2027, requiring monitoring and verification of methane emissions for all fuel deliveries to the bloc. A coalition including Germany, Italy, Czech Republic, and the Netherlands is requesting a three-year delay.

German Position: Economy Minister Katherina Reiche warned the regulation would disrupt both LNG and petroleum product imports, including critical kerosene (jet fuel) supplies. Germany is calling for postponement or suspension to ensure reliable energy security.

Market Context: The opposition comes amid heightened energy tensions from an Iran war that has:

• Closed the Strait of Hormuz, a crucial shipping route
• Caused jet fuel prices to surge
• Forced airlines to cut uneconomic routes
• Disrupted Middle Eastern supplies, which typically cover 20% of Europe's jet fuel demand

Industry Response: The U.S. and other suppliers have warned the rules could hamper gas deliveries to Europe. However, environmental groups dispute these concerns, asserting compliant supplies are available.

EU Stance: Energy Commissioner Dan Jorgensen stated Brussels won't rewrite the law—a cornerstone of EU climate policy—though the European Commission has drafted plans to waive penalties for companies breaching initial requirements. The Commission maintains the rules are already flexible enough.

Supply Mitigation: Europe has managed war-induced disruptions so far through increased local refinery output and higher imports from the U.S. and Nigeria.

Environmental Context: Methane ranks as the second-largest contributor to global warming after carbon dioxide.