Germany warns that the EU methane law could disrupt jet fuel supply
Germany, Europe's largest gas market, warned that EU plans to regulate methane emissions for oil and gas imports could disrupt jet fuel supply, already under pressure from the Iran War's energy shock.
The?European?Union?will require monitoring and verifying methane emission for fuel deliveries into the bloc. The regulations aim to reduce leaks of this powerful greenhouse gas, but they have been met with strong opposition by industry and suppliers. This includes the U.S. which warned last week that the law will hamper gas deliveries to Europe.
The methane regulation, as it stands now, would prohibit not only LNG gas imports to Germany but also petroleum products?from being imported after 2027," German Economy Minister Katherina reiche said on Friday ahead of a meeting of EU ministers.
The ministers will be discussing a request from 12 other EU countries, including Italy and the Czech Republic, to delay rules by three years.
Reiche stated that "we need to at least postpone or suspend the methane regulation so the Federal Republic of Germany can reliably ensure its supply of imported gas, as well petroleum products like kerosene."
Energy analysts and environmentalists have denied the claim that EU legislation would limit fuel imports. They say that there are ample supplies that can meet the law.
The European Commission, in response to opposition from some members states to the proposed rules, has developed plans to waive penalties against companies who violate the rules.
Dan Jorgensen, EU energy commissioner, said that the EU was prepared to'make it easier for people to implement the laws. But the law itself - which is a key part of the Commissions climate agenda - already had enough flexibility and would not be rewritten.
Methane is second in importance to carbon dioxide as a contributor to global warming.
The closure of the Strait of Hormuz by the Iranian?war, which is a major shipping route for oil supplies worldwide, has led to a spike in jet fuel prices, leading airlines to reduce unprofitable flight routes.
About 20% of Europe's jet-fuel demand is met by imports from the Middle East.
The EU has been able to weather the Iran War-induced disruption despite warnings from airlines about potential kerosene shortfalls. Local refineries have increased their kerosene production, while U.S. supplies and Nigerian supply are increasing in order to fill the gap. (Reporting and editing by Susan Fenton; Reporting by Kate Abnett)
(source: Reuters)
