EC proposes one-year delay to methane law import obligations

The European Commission is proposing to delay import requirements under the EU's landmark methane emissions regulation by one year, Energy Commissioner Dan Jorgensen said Sept. 29, as the continent prepares for what is expected to be a challenging winter with energy prices facing upside risks.

"I am proposing now that we take parts of it [the methane law] — the parts that are connected to imports — and postpone the set in force date with one year," Jorgensen told reporters in Dublin during an informal meeting of EU energy ministers. "This will relax hopefully also the markets on this."

Despite the proposed delay, Jorgensen stressed that the methane regulation is "very important" and the EU will "stick to our ambitions."

The Executive Director of the International Energy Agency, Fatih Birol, spoke to reporters with the commissioner and endorsed the move.

"At this stage, Europe and the rest of the world are facing a major energy security risk," Birol said. "In order to avoid this risk or go through this period with minimum damage, I would completely support you, Mr. Commissioner, [in] making some temporary steps there — without forgetting the original objective — is something that I fully support."

"Europe is going to enter a very difficult winter. We hope that it will not be a harsh winter, but hoping is not an energy strategy," Birol added.

European LNG prices have been hovering near their highest levels since late 2022 in recent weeks, as the war in the Middle East enters its eighth month. Platts, part of S&P Global Energy, assessed the DES Northwest Europe LNG marker at $24.11/million British thermal unit on Sept. 28.

Methane pushback

The move to delay import requirements comes after persistent outcry from industry players, who have argued that uncertainty around compliance with the methane emissions regulation could threaten EU LNG trade and energy security.

The EU government has also pushed for delays.

From Jan. 1, 2027, under the current methane law, importers of oil, natural gas, and coal into the EU are set to have to show that new contracts meet the same methane monitoring, reporting and verification standards as EU producers — or face penalties.

However, in July, the EC issued guidance urging member states to suspend penalties under the regulation — which can be as high as 20% of a company's annual turnover — until after 2029. Market participants, nevertheless, critiqued the nonbinding recommendations as insufficient.

Canada trade

Jorgensen separately hinted Sept. 29 at a future deepening of LNG relations with Canada as the EU pushes to bolster its energy security.

"We are working very closely with Canada, for instance, helping us also with LNG in the future," he told reporters, without offering further details.

Canada currently only exports cargoes via the LNG Canada facility on the country's west coast. So far this year it has shipped about 7.5 million metric tons of the super chilled fuel, which have all gone to Asia, according to data from S&P Global Energy CERA.

On Sept. 29, Shell PLC, which operates LNG Canada, announced a final investment decision to develop a second phase of the project, which would double its capacity to 28 million mt/ year.

Commercial operation from Phase 2 of LNG Canada are expected to start in the early 2030s, Shell said.