Published: 12:45, April 21, 2025
EU ‘explores tweaking methane rules for US gas to help trade talks’
By Reuters

This photograph taken on February 18, 2025, shows the Berlaymont building, which houses the European Union Commission headquarters, in Brussels. (PHOTO / AFP)

BRUSSELS - The European Union is looking at ways to make it easier for US gas exports to comply with its methane emissions rules, as the bloc attempts to avert a trade war with US President Donald Trump, three sources familiar with the matter told Reuters.

The European Commission is working on its offer for trade negotiations with the United States, to attempt to avoid Trump's planned tariffs - with both sides signaling that energy could form part of a broader trade deal.

Trump has said several times the EU should buy more American oil and gas to lower its trade surplus with the United States. European Commission President Ursula von der Leyen has said the EU could increase US LNG purchases, as the bloc seeks to quit Russian gas by 2027.

As part of the energy options being explored to aid trade talks with the US, the Commission is looking at using flexibilities in how it applies EU methane rules, which could benefit US LNG exporters, the sources said.

ALSO READ: Appeasement will not relieve the EU of pressure

The aim would be to avoid weakening the overall law, while introducing technical rules that could enable US exporters to be deemed to be following "equivalent" methane rules to those of the EU, and therefore automatically comply with the EU law, they said.

The sources did not provide details on how that could be accomplished.

The move could be complicated by Trump's plan to scrap existing US regulations requiring gas producers to report their methane emissions, making it harder for the EU to justify letting US companies automatically comply.

A European Commission spokesperson declined to comment on whether it was exploring possible flexibilities in the methane law that could benefit US LNG exporters.

ALSO READ: EU brainstorms on how to avert - or brace for - US tariffs

"The Commission has an ongoing dialogue with industry on all relevant matters related to our legislation," the spokesperson said.

Methane is a powerful greenhouse gas and the second-biggest cause of climate change after carbon dioxide emissions.

Starting this year, the EU requires importers of oil and gas to Europe to monitor and report the methane emissions associated with those imports.

The EU methane law could give US LNG an advantage over gas from suppliers with a higher methane emissions intensity.

ALSO READ: United front right response to US injustice

But US exporters warn they will struggle to technically comply with the law, because the fragmented nature of the country's gas industry means they cannot track methane emissions along their value chains, since one LNG shipment may contain co-mingled sources of fuel from numerous gas fields.

From 2027, the EU law will make compliance with methane rules equivalent to those of the EU a requirement for foreign suppliers to sign new contracts with European buyers.

The European Commission held an online meeting last month with US. LNG companies to discuss their concerns about the law.

The US is already the EU's biggest supplier of LNG, having ramped up deliveries as Europe raced to replace Russian gas following Russia's special military operation in Ukraine in 2022.

READ MORE: EU plans countermeasures to new US tariffs, says EU chief

The US supplied 45 percent of the EU's LNG imports last year, which worked out at 16.5 percent of total EU gas and LNG imports.