Norway warned EC in 2025 methane law risks hindering oil, gas output

The Norwegian government warned the European Commission in a memo sent in 2025 and seen by Platts that the EU's methane emissions regulation could lower Norway's oil and natural gas exports to the EU and, ironically, increase Norwegian producers' total upstream greenhouse gas emissions.

"We would like to convey some highly problematic aspects and consequences of the Regulation and possible impacts on petroleum activities, with potentially negative results for stability of energy supply and emissions," the Norwegian government said in the memo, which was written following a public consultation on the law.

The EU regulation seeks to lower methane emissions from the energy sector, both in Europe and across global supply chains. The law includes a methane emissions reporting requirement for gas, crude oil and coal imports, as well as a mandate for importers to meet emissions-intensity limits that have yet to be established.

The Norwegian government said in the 2025 memo that while it favors the EU's intention, it views the law as "inferior" to its own approach.

Indeed, Europe's largest oil and gas producer had the world's lowest upstream methane emissions intensity in 2025, according to data from the International Energy Agency published in 2026, after the memo was shared with Brussels.

Production concerns

One of Norway's concerns about the law centers on production impacts. Requirements to survey for and, if necessary, repair methane leaks risk spurring more and longer shutdowns of oil and gas facilities, the government said.

"This will affect Norwegian production levels and the ability to maintain a stable supply of natural gas and oil to the EU," it wrote. "Frequent inspections and shutdowns may also increase the probability of adverse safety events at facilities."

Norway was Europe's largest gas supplier in 2025. It sent the continent roughly 111 billion cubic meters of exports, according to data from S&P Global Energy CERA. This was just over 35% of total European natural gas and LNG imports across the year.

Emissions boost

Given its existing record limiting methane emissions, Norway argued there is scant opportunity for it to improve.

"The potential for further [methane] reduction is very limited, making the obligations and costs of the Methane Regulation disproportionate to potential environmental benefits," the government said.

Perversely, it also highlighted worries that the EU law could actually increase its hydrocarbon industry's emissions.

"There are concerns that parts of the obligations in the Regulation would result in an overall increase of total GHG-emissions [greenhouse gas emissions] from Norwegian upstream petroleum activities," it said.

The government noted that frequent offshore site inspections could lead to higher emissions from maritime activities than would be saved from fixing leaks. Increased flaring is another concern, since shutting down plants to fix minor leaks would require flaring that would otherwise be unnecessary without the regulation, it said.

Norway reply

The Norwegian government reaffirmed the concerns from the 2025 memo in an emailed statement to Platts, part of S&P Global Energy, following a request for comment on May 21.

"Norway, as the largest producer and only significant net-exporter of oil and gas in Europe, is important for European energy security," Norway's State Secretary in the Ministry of Energy, Snorre Erichsen Skjevrak, said. "Norway feels great responsibility for European energy security also going forward. Regulations that may interfere with this [aim are] of course of great concern. It is particularly the leak detection and repair (LDAR) requirements of the Regulation that could lead to more frequent and longer shutdowns of key gas processing plants onshore and petroleum installations offshore. This will also increase emissions."

Erichsen Skjevrak went on to say: "Our concerns have been voiced through a non-paper sent to the Commission. Furthermore, our concerns have been elaborated upon in bilateral meetings with the Commission. We're not able to specify a timeline for further discussions with the EU Commission at this moment."

Norway is currently assessing the regulation's relevance to the European Economic Area, which will determine the severity of its compliance requirements, the state secretary said. The EEA includes all EU member states, as well as Norway, Iceland and Liechtenstein.

The EC did not reply to a request for comment on the 2025 memo.

Other critiques

Other governments and industry players have also criticized the methane regulation ahead of a 2027 deadline, when new import contracts must meet the same monitoring, reporting and verification standards as EU producers or face penalties.

Much of this recent concern has centered around what many see as uncertainties and impracticalities in implementing and complying with the law, as well as worries over penalties for falling foul of the requirements, which can be as high as 20% of a company's annual turnover. Some have said that legal worries have even deterred the conclusion of new import contracts into Europe.

In April, the US ambassador to the EU, Andrew Puzder, said the law risked hindering EU-US energy trade and fuelling another European "energy crisis." The US is the EU's largest LNG supplier.

Energy market players have urged the EU to delay the rollout of the regulation to allow time to amend it.

The EC has stressed that the law already includes sufficient safeguards to ensure it does not threaten the EU's energy security. It also plans to release recommendations around implementation and penalties under the regulation.