EU Methane Regulations Face Renewed Criticism from Major LNG Exporters

Leading global liquefied natural gas (LNG) producers, including the US, Qatar, Nigeria, and Algeria, have renewed calls for a review of European Union methane regulations set to take effect in January 2027. In an open letter to the European Commission, the energy ministers from these countries expressed concerns that key technical aspects of the regulation remain unclear, potentially limiting their ability to export LNG to the EU once the rules enter force.

The letter urges the Commission and EU Member States to work with industry stakeholders to clarify and modify the law, enabling effective implementation while reducing "untenable risks." Starting in 2027, 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. Qatari and US delegations have repeatedly argued the rules are unworkable in their current form and could effectively halt LNG imports at a time when the EU is trying to phase out Russian gas.

According to the Institute for Energy Economics and Financial Analysis (IEEFA), LNG from the US, Qatar, Algeria, and Nigeria accounted for 81% of the EU's LNG imports during the first quarter of this year. While the exporters support the EU's objectives of "economic competitiveness, prosperity, sustainability, and energy security," they call for a pause in implementation to develop "methodologies and compliance pathways that work for all." They also advocate for grandfathering new contracts while regulations are refined and for removing penalties for non-compliance during the transitional period. The EU Commission has been contacted for comment.