Source: Golden Ten Data.

According to foreign media reports, three informed sources revealed that the EU is studying how to simplify the procedures for US natural gas exports to comply with its methane emission regulations, as the EU aims to avoid trade disputes with US President Trump.

The European Commission is developing a trade negotiation plan with the USA to avoid tariffs proposed by Trump, with both sides indicating that energy could be part of a broader trade agreement.

Trump has repeatedly stated that the EU should purchase more oil & gas from the USA to reduce its trade surplus with the USA. European Commission President Von der Leyen has stated that as the EU seeks to get rid of Russian gas by 2027, the EU can increase its procurement of US liquefied natural gas (LNG).

Informed sources said that as part of the energy scheme being explored to assist trade negotiations with the USA, the European Commission is studying how to flexibly align US natural gas with the EU's methane regulations, which may benefit US LNG exporters.

They indicated that the goal of doing so is to avoid undermining overall legality while introducing technical rules that would allow US exporters to be considered in compliance with methane regulations "equivalent" to EU regulations, thus automatically complying with EU law. Informed sources did not disclose specific details on how this goal would be achieved.

This initiative may become complicated due to Trump's plans to abolish existing US regulations that require natural gas producers to report their methane emissions, which would make it more difficult for the EU to justify allowing US companies to automatically comply with its regulations.

A spokesperson for the European Commission refused to comment on whether it is exploring a methane law that could benefit US liquefied natural gas exporters. The spokesperson said, "The European Commission is in ongoing dialogue with the Industry on all matters related to our legislation."

Methane is a potent greenhouse gas and the second largest contributor to climate change after carbon dioxide emissions. Starting this year, the EU requires importers of Oil & Gas to Europe to monitor and report methane emissions related to these imports.

The EU's methane law may give US liquefied natural gas an advantage over suppliers with higher methane emission intensities, such as Russia and Algeria.

However, US exporters warn that they will find it challenging to technically comply with the law, as the fragmented nature of the US natural gas industry means they cannot track their methane emissions chain, since a single liquefied natural gas shipment may contain mixed fuel sources from numerous gas fields.

Starting in 2027, EU laws will require foreign suppliers to comply with methane regulations that are "equivalent" to EU requirements as a condition for signing new contracts with European buyers.

Last month, the European Commission held an online meeting with US liquefied natural gas companies to discuss their concerns about the law.

The USA is already the largest liquefied natural gas supplier to the EU, significantly increasing liquefied natural gas deliveries after the onset of the Russia-Ukraine conflict in 2022, as Europe sought to replace Russian natural gas. Last year, the USA supplied 45% of the total liquefied natural gas imports of the EU, accounting for 16.5% of the total natural gas and liquefied natural gas imports of the EU.

Editor/jayden