The IEA warns that EU's methane laws could restrict the bloc's oil supplies options

The International Energy Agency warned that the EU's rules on methane could restrict the oil supply available to the bloc. Member states are preparing to discuss the calls of Germany and other countries to delay these measures.

The EU has passed legislation to reduce emissions of methane, a powerful greenhouse gas. In January 2027, imports of oil and gas will have to comply with emission monitoring requirements that are equivalent to the EU standard or OGMP 2.0.

The IEA?said that around 22 million barrels of oil per day will be produced globally in 2027 to meet OGMP 2.0 --?but not all would be available to EU. In?2025, the EU imported 9.3 millions bpd.

The IEA stated in a'monthly oil report' that it estimates that the EU refiners will be able to import less than half of the traded crudes.

The IEA explained that this is because certain grades of crude are not easily substituted and some producers'may prefer to sell in more lucrative markets outside Europe. The IEA said that heavy crude oil used for asphalt production is mainly supplied by Mexico and Venezuela which don't meet the EU standard of methane.

Calls for a Delay

The agency stated that limiting the crude pool for EU refiners would result in higher input prices or a shift towards the use of less-than-optimal crudes. This, it said, could ultimately "weaken" the EU's security of energy.

The IEA urged EU officials to clarify the implementation of the new rules, warning that uncertainty would further limit access to oil. The EU Ambassadors will 'discuss' the methane legislation in Brussels tomorrow after more than 50% of the?member countries, including Germany, Italy and the Czech Republic called for a postponement.

Environmental campaigners have called on the EU to continue its "clampdown" on methane emissions, the second biggest cause of climate changes after CO2 emissions. They noted that the total amount of oil and natural gas produced globally, meeting EU and U.N. standard, exceeds what the EU needs to import.

The government has also been slow in preparing for the new rules. As no EU country has set up a verification body to enforce legislation, companies have no way of certifying compliance. The European Commission is drafting plans to waive fines for companies who violate the methane regulations, but so far has refused to delay their introduction.

(source: Reuters)