Europe Weighs Methane Rule Delay as Energy Supply Risks Mount
The European Union’s so-called methane rule is scheduled to enter into effect in January. The rule is massively unpopular among large energy exporters, and these exporters have a lot more options in terms of buyers than the EU has in terms of suppliers. It would have to either axe the rule or face a further squeeze in oil and gas. Some in Brussels are aware of that, with Energy Commissioner Dan…
The European Union is considering delaying the implementation of its methane rule, which is set to take effect in January, due to concerns about energy supply risks. This unpopular rule among large energy exporters, such as the United States and Qatar, has prompted them to argue that tracking and reporting methane emissions along the supply chain is impossible.
The EU is seeking a mechanism to verify emissions data, but no agency is currently accredited to do so. Energy Commissioner Dan Jorgensen has instructed his team to explore the possibility of postponing the implementation by one year, which would give market actors time to implement the new rules without compromising security of supply and prices.
However, there are uncertainties and complications surrounding this issue, especially as fuel prices are already at record highs and gas prices exceed 70 euro per MWh. The EU could either delay the rule or face a potential energy supply shortfall if energy exporters divert their cargoes to other regions.
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