EU Gas Crunch Forces Rethink of Methane Rules
The European Commission has signaled it would delay the entry into effect of its controversial methane regulation amid a persistent gas crunch resulting from the wars in Ukraine and the Middle East. That may not be enough to offset the effects of that crunch—because the regulation is not yet in effect and Europeans are already struggling. “I have instructed my services to look into the…
The European Union is considering delaying the implementation of its controversial methane regulation amid a persistent gas crunch caused by the conflicts in Ukraine and the Middle East. Energy Commissioner Fan Jorgensen announced that the Commission may postpone the import part of the legislation by one year, giving market actors time to comply without compromising security of supply and prices.
However, this move will not address the affordability of gas, as spot market prices are currently at levels last seen in 2022-2023, and supply buffers are much thinner than they were four years ago. With Russian gas imports banned and Norway pumping as much pipeline gas to the EU as possible, the EU is heavily reliant on the United States for its liquefied gas imports.
The U.S. continues to oppose the methane regulation, which would require companies to disclose the methane footprint of their LNG from the well to the tanker. While the EU is listening to Member States and companies for more flexibility, specific details on how to support affordability remain lacking.
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