EU parliament backs 3-year delay to methane importer obligations

The EU's parliament voted Oct. 22 to back a three-year delay on importer requirements under the EU's methane emissions regulation.

The parliament is seeking a longer window than the European Commission, which called for a one-year delay earlier this month.

The parliament handled the matter under its urgent procedure, which allows for priority consideration of proposals. The measure passed with 341 votes in favor, 225 against, and 6 absentions, according to a statement. The parliament will next go into negotiations with the EU Council.

A Council spokesperson told Platts, part of S&P Global Energy, Oct. 22, that member state representatives had discussed the EC's methane proposal on Oct. 21 and that ambassadors will again discuss the matter on Oct. 28.

The parliament also voted to give EU oil and natural gas operators three additional years to submit reports on source- and site-level methane measurements required by law.

Methane obligations

The EU adopted its landmark methane emissions regulation in 2024.

Under the law, importers of crude oil, gas, and coal into the EU via new contracts will have to show that volumes they bring into the bloc are subject to the same methane monitoring, reporting and verification requirements as those produced within the EU from the start of 2027.

The push to delay these requirements comes amid both economic and procedural concerns.

The European Commission framed its decision to propose the delay in terms of the ongoing market turmoil spurred by the war in the Middle East.

The move, it said, would "help save costs" as Europe approaches what many expect will be a tough winter of expensive energy. Market watchers, however, have been skeptical that a delay will lower energy prices in the coming months.

Industry participants, meanwhile, have also called for a delay for different reasons. Many worry about uncertainty over how to implement and comply with the regulation. Industry groups have called for a three-year delay to allow time to develop compliance mechanisms.

The wrangling comes as European LNG prices remain elevated with winter approaching. Platts assessed the DES Northwest Europe LNG marker at $27.985/million British thermal unit on Oct. 21, near its highest level since December 2022.