EU Methane Regulations Face Growing Opposition

Germany has joined calls for a revision of European Union methane regulations, scheduled to take effect in January 2027. German Economy and Energy Minister Katherina Reiche warned that the current rules could block liquefied natural gas (LNG) imports into the region. Under the regulations, importers must ensure LNG shipped to the EU complies with methane monitoring rules or face penalties of up to 20% of a company's annual global turnover.

Key Concerns and Calls for Action

Reiche stated that an urgent revision is needed, as the regulation would prevent not only gas and LNG imports into Germany but also petroleum products from 2027. She called for at least a postponement or suspension to secure Germany's gas supply. LNG exporters and supermajors have repeatedly argued over the past year that the regulation is unworkable in its current form.

Environmental Context and Industry Challenges

Reducing methane emissions, which account for about 30% of global warming since the industrial revolution, is crucial for limiting greenhouse gases from the energy sector and is central to the EU's goal of net zero emissions by 2050. However, LNG exporters claim they cannot comply with testing, reporting, and methane measuring requirements that extend to field-level data over which they have no control. Both the US and Qatari governments have stated that the rules, due to take effect from January 2027, would prevent them from shipping LNG into the EU.