Biden officials ask EU methane regulations to be aligned with US rules to ease LNG flow, says letter

According to a letter obtained by the, President Joe Biden’s administration asked that the European Union ensure that liquefied gas imports meeting U.S. regulations for methane automatically meet Europe’s standards.

The linking of U.S. methane and EU standards will protect the United States' LNG trade with Europe, while also securing Biden's rules on methane even if these are repealed in the future by Donald Trump's administration.

We understand that the process will take some time. We would like to start discussions as soon possible to ensure a reliable and stable natural gas supply from the United States into Europe.

The letter, signed by Brad Crabtree and Joe Goffman of the Department of Energy’s fossil energy office and addressed to Ditte J. Jorgensen, the top energy official of the European Commission, was sent on behalf of Brad Crabtree and Joe Goffman.

A spokesperson for the European Commission did not respond immediately to a comment request.

The EPA confirmed that it had sent the letter along with the DOE, and the EU confirmed receipt.

After the Russian invasion of Ukraine, European countries began to reduce their dependency on Russian energy sources and look for other sources.

Methane is the primary component of natural gas, and LNG. More than 150 countries have committed to reduce their emissions by 30% in the next decade, including members of the U.S.A. and EU.

In May, the European Union approved a new law that will limit methane emissions from oil and gas imported into Europe starting in 2030. This law is intended to pressure international suppliers to reduce leaks during production and transportation.

The EU still hasn't determined the exact limits for methane or how other countries' domestic methane regulation could be considered as "equivalent".

The Biden administration, meanwhile passed regulations late last year that crack down on U.S. industry methane releases, which were administered by the EPA.

It finalized the methane charges on Tuesday for large methane spills at oil-and-gas facilities.

Trump said that he intends to reverse or revoke many of the regulations from the Biden administration to ease the burdens and costs on the US energy sector. Methane rules are likely to be the first targets. He announced on Monday that former New York legislator Lee Zeldin, an ally, would be his EPA Administrator. Zeldin will "ensure that fair and rapid deregulatory actions are taken in a manner that unleashes the power of American business."

Ten US-based trade organizations, including the Chamber of Commerce of America and American Petroleum Institute, raised concerns with EU officials in August about their import requirements for methane.

In a letter dated Aug. 2, they stated that "the importers who fail to comply with the obligations could be prevented from importing supplies into the EU and the EU's supply security may be severely affected."

Jonathan Banks, global Director on Methane at Clean Air Task Force (an environmental group), said that the EU's standard, as well as others in the making, will require U.S. providers to clean up regardless any U.S. regulation rollbacks.

He said that "market access will be dictated based on proof of low emissions." (Reporting and editing by Shri Navaratnam, with additional reporting from Kate Abnett in Baku)

(source: Reuters)