Future of US LNG exports to Europe uncertain amid regulatory shifts

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A new EU rule regulating the methane emissions of imported fuels is coming down the pike, and it’s creating significant uncertainty about the future of US LNG imports into the region.

 
Starting January first 2027, LNG importers will need to prove they meet the EU’s methane monitoring standards or face penalties. This alone is ringing alarm bells in the US gas industry.

  
Unlike most of world, US LNG export facilities source gas from a vast pipeline network. This network combines supplies from production basins with widely different emissions intensities.

The US is also in the middle of a deregulatory push that could make it harder to meet these standards. On top of that, the EU has yet to fully specify its requirements.

  
US officials want the EU to change the regulation. They warn that it could block US LNG from going to Europe. This would be a major change, since most US LNG is flowing to the region.

The EU is sticking to its guns but has signaled a willingness to work with market participants.

  
As we wait for details, there’s a shared interest among these trade partners in making sure US exports to the EU continue.