US and Gulf exporters warn EU methane rules may cut gas

The United States, alongside major gas exporters Qatar, Algeria, and Nigeria, has warned the European Union that its upcoming methane emissions regulations threaten to disrupt natural gas supplies to the bloc, risking higher prices and potential energy shortages. The dispute, which highlights Europe's deep energy dependence on U.S. liquefied natural gas (LNG) since severing most Russian imports, is set for debate by EU energy ministers.

In a letter to EU leaders, the exporting nations argued the regulation, which imposes strict methane monitoring, reporting, and verification standards on all fossil fuel imports starting in 2027, lacks a viable compliance pathway. They warned that the legal uncertainty is already discouraging long-term supply contracts for gas that will be delivered when the rules take effect. U.S. Energy Secretary Chris Wright stated that without meaningful reform, American LNG would simply be diverted to other global buyers.

The EU adopted the methane regulation in May 2024 as a cornerstone of its climate policy, aiming to curb emissions of a potent greenhouse gas. The rules are designed to apply to both domestic producers and foreign suppliers. EU Energy...