Oil and Gas Industry urge EU to stop methane emission law
Oil and gas companies warned that the European Union's methane emission law could disrupt Europe’s fuel imports if it is implemented next year.
The?industry's call comes after the U.S. The?government asked the EU to exempt U.S. gas and oil from the rules. Brussels has offered more flexible options for companies to comply with the rules, but refused to rollback this policy. It is a key pillar in its climate strategy.
A study commissioned by the industry and published on Monday by Wood Mackenzie said that up to 43% of EU imports of gas and 87% EU imports of crude oil could struggle to meet EU regulations from 2027. Importers would be exposed to heavy fines, and there was a risk of supply gaps if producers were discouraged from shipping fuel into Europe.
FuelsEurope, a group of fuel manufacturers and IOGP have called for a pause in the current law and a change.
The EU cannot afford a self made?regulatory shock?, especially in the current geopolitical climate, said Francois Regis Mouton de Lostalot. IOGP members include ExxonMobil Chevron BP TotalEnergies.
The U.S.-Israel war against Iran has pushed up oil and gas prices this month, adding to the short-term pressure already being placed on European governments as they prepare for the phase-out of Russian energy imports. The majority of EU oil and natural gas comes from Norway and America.
The EU methane legislation requires that imported gas comply with monitoring and verifying rules equivalent to Europe's from?January 20, 2027 or meet a voluntary industry standard called "Oil and Gas Methane Partnership - 2.0 Level 5". All of the above companies are a part of the OGMP.
Climate groups have disputed the study findings. Environmental Defense Fund's own analysis showed that following the methane reduction commitments made by major oil and?gas companies, the volume of OGMP 2.0 level 5 compliant gas would be more than twice the EU demand in 2027, including the supplies from Norway, and the U.S.
A spokesperson for the European Commission did not respond immediately to a comment request. Reporting by Kate Abnett. Mark Potter (Editing)
(source: Reuters)
