The European Union is exploring ways to ease compliance with its new methane emissions regulations for U.S. liquefied natural gas (LNG) exporters, in a bid to prevent a trade conflict with former U.S. President Donald Trump, according to three sources familiar with the discussions.
As the European Commission prepares a negotiating package aimed at averting Trump’s proposed tariffs, energy has emerged as a potential centerpiece in the broader transatlantic trade deal. Both sides have signaled a willingness to include LNG and other energy products in the talks.
Trump has repeatedly urged the EU to boost purchases of American oil and gas, arguing that it would help reduce the EU’s trade surplus with the United States. In response, European Commission President Ursula von der Leyen has indicated openness to increasing imports of U.S. LNG as the EU races to eliminate its reliance on Russian gas by 2027.
As part of its trade strategy, the Commission is weighing how to apply flexibility within its methane regulations. The approach could allow U.S. exporters to be recognized as meeting “equivalent” standards, thus enabling them to automatically comply with EU law.
These regulatory adjustments would aim to maintain the strength of the bloc’s methane legislation while introducing technical allowances tailored to the structure of the U.S. gas sector. Specific details on how this equivalency would be determined were not disclosed.
However, the plan could face challenges. Trump has proposed dismantling existing U.S. rules that require gas producers to report methane emissions, which could make it more difficult for the EU to justify a blanket equivalency for U.S. exporters.
A European Commission spokesperson declined to confirm whether flexibility options were under review, stating only that “the Commission has an ongoing dialogue with industry on all relevant matters related to our legislation.”
Methane, the second-largest contributor to climate change after carbon dioxide, is a potent greenhouse gas. Under the EU’s new regulations, which came into force this year, importers of oil and gas must monitor and report the methane emissions tied to those imports.
While the rules may give U.S. LNG an advantage over suppliers with higher emissions intensities—such as Russia and Algeria—American exporters have warned they may struggle to meet the technical demands. The fragmented nature of the U.S. gas industry makes it difficult to trace methane emissions across complex supply chains, where a single LNG cargo can contain fuel blended from numerous gas fields.
Beginning in 2027, the EU law will require foreign suppliers to meet methane standards equivalent to those of the EU in order to sign new contracts with European buyers.
Last month, the European Commission held an online meeting with representatives of U.S. LNG firms to hear their concerns and discuss potential solutions.
The United States has already become the EU’s largest supplier of LNG, ramping up shipments following Russia’s 2022 invasion of Ukraine. In 2024, the U.S. accounted for 45% of the EU’s LNG imports, which represented 16.5% of the bloc’s total gas and LNG supply.
As trade negotiations intensify, the methane rules are likely to remain a critical point of discussion between Brussels and Washington.
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