Friday, December 20, 2024

US pressures EU to align LNG methane regulations

December 19, 2024

A letter obtained by showed that U.S. officials redoubled their efforts to convince EU counterparts that shipments of liquefied gas meeting current U.S. regulations on methane would automatically meet the new European standards for gas imports. On December 17, the administration of President Joe Biden sent a second email to Ditte J. Jorgensen (EU Director-General for Energy) to increase support for their case that US Environmental Protection Agency regulations should be considered "equivalents" to EU regulations whose reporting requirements for emissions begin in 2025. In May, the European Union approved a new law that would limit methane emissions from oil and gas imported into Europe starting in 2030. This will force international suppliers to reduce leaks of this powerful greenhouse gas.

The linking of U.S. methane standards with EU standards will protect the growing LNG trade between Europe and the United States, while also cementing Biden’s strict rules regarding methane as a powerful greenhouse-gas, even if these are repealed in future by Donald Trump's administration.

Joe Goffman, EPA Assistant Administrator of air and radiation, said: "The letter is intended to highlight in detail the entire suite of substantive emission standards, their robust compliance and implementation, and the role reporting requirements play in ensuring accountability and transparency." Goffman signed the letter along with Brad Crabtree. Brad is an assistant secretary in the Energy Department’s Office of Fossil Energy and Carbon Management. The first letter was sent to the EU just a few days before the U.S. elections.

EU officials did not respond to requests for comment.

The United States is a major oil and gas producer in the world. Its exports of LNG soared after Russia invaded Ukraine, which led European countries cut their dependency on Russian energy to seek alternative sources. The DOE has suspended permits for new LNG imports. It said that it found this week that increasing LNG exports could lead to a dramatic increase in greenhouse gas emissions, and also cause price increases for U.S. consumers of energy. The EPA finalized regulations that tighten up on methane releases, which is the main component of natural gas and LNG. They also set a fee to target large methane leaks from energy infrastructure.

In a letter sent to the EU last week, officials highlighted the potential for emissions reductions of the regulations.

They wrote that the EPA's methane standards will reduce 58 millions tons of methane from 2024-2038, while the Waste Emissions Charging rule will result in a cumulative reduction of 34 million metric tonnes CO2-equivalent through 2035.

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

Trump, who is a climate change skeptic, and is a strong supporter of fossil-fuel development, has pledged to end the moratorium immediately on new LNG export licenses when he returns the White House to on January 20. He has also promised to reverse most of Biden’s climate-focused regulations.

(source: Reuters)

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