EU Methane Regulation: A Problem For The LNG Industry?

On 15 July 2024, "Regulation (EU) 2024/1787 of the European Parliament and of the Council of 13 June 2024 on the reduction of methane emissions in the energy sector and amending Regulation (EU) 2019/942" (the "EU Methane Regulation") was published in the Official Journal, and consequently entered into force on 4 August 2024.

Recognizing methane's significant contribution to climate change, being second only to carbon dioxide, the EU Methane Regulation is the European Union's attempt to "take the lead"¹ on efforts to reduce methane emissions.

The EU Methane Regulation includes wide-ranging measures that will impact those with gas, oil or coal operations in the EU (including LNG facilities in the EU). However, the EU Methane Regulation also includes measures applying to coal, oil and natural gas produced outside the EU but placed on the EU market by importers. This article focuses on this second category – the measures applying to entities importing