USA Call for Harmonized Methane Standards in LNG Trade with Europe

In a contentious letter, the Biden administration has urged the European Union to automatically recognize U.S. methane regulations for liquefied natural gas (LNG) deliveries. Synchronizing methane standards could secure the growing LNG partnership between the U.S. and Europe, even if a shift in direction occurs under Donald Trump's forthcoming presidency. The request for dialogue, signed by senior officials of the U.S. Energy and Environmental Protection Agency, aims at a reliable and sustainable natural gas supply from the United States to Europe. A timely meeting is necessary to strengthen this partnership according to the new emissions regulations. Notably, the share of U.S. LNG exports has significantly increased following Russia's invasion of Ukraine, as Europe sought to reduce its dependence on Russian energy. Methane, considered the main component of natural gas and LNG, is among the most potent greenhouse gases. A total of 150 countries, including the U.S. and the EU, have committed to a 30% reduction in methane emissions by the end of the decade. The EU plans to establish methane emission limits for oil and gas imports starting in 2030, compelling international suppliers to act. However, how compliance with U.S. regulations is assessed remains uncertain. Meanwhile, the Biden administration has issued new regulations to reduce methane emissions and introduced a fee on large methane leaks. Nevertheless, with Trump taking over, these measures may be under pressure. He announced intentions to roll back numerous regulations, with methane regulation considered a primary target to lower barriers for the U.S. energy industry.