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EU Methane Rules Threaten European Oil, Gas Supply: US DOE

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According to the US Department of Energy, a joint coalition with Qatar, Nigeria, and Algeria has urged the EU to freeze its impending methane regulations.

In an open letter to the EU leadership on Wednesday, energy ministers, including US Energy Secretary Chris Wright, noted that independent industry analysis shows nearly all EU oil imports and a significant portion of natural gas imports will fail compliance metrics by the January 2027 deadline.

Importers are already purchasing fuel destined for 2027 storage without a viable compliance pathway, introducing severe financial risk to multi-billion-euro contracts, it stated.

The suppliers emphasized that while their respective domestic industries have spent substantial capital reducing methane intensity, the prescribed measuring, reporting, and verification timelines remain functionally impossible for the majority of global exporters to meet, as per the statement.

The letter said that pressing forward without clear methodologies will force a sharp contraction in available crude and gas volumes, driving immediate supply shortages and structural price hikes for European consumers.

The coalition urged the European Commission to pause the regulation and collaborate with industry stakeholders on a framework that preserves regional energy security.

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