EU May Soften Methane Rules to Boost U.S. LNG Imports Amid Trade Tensions

The European Union is considering easing the application of its methane emissions regulations to help U.S. liquefied natural gas (LNG) exports comply with its new climate rules, sources told Reuters. The move comes as the EU seeks to avoid a potential trade clash with U.S. President Donald Trump, who has pushed Europe to buy more American oil and gas to reduce its trade surplus.

The European Commission is preparing a trade negotiation package that may include energy cooperation. President Ursula von der Leyen has suggested the EU could increase U.S. LNG imports as the bloc aims to fully cut Russian gas reliance by 2027.

Under current EU methane laws, importers must monitor and report emissions related to oil and gas imports, with stricter compliance required from 2027. The Commission is exploring technical rule flexibilities that would allow U.S. exporters to be recognized as adhering to “equivalent” methane standards without undermining the law.

However, Trump’s plans to roll back U.S. methane reporting regulations could complicate these efforts. U.S. LNG exporters face challenges meeting EU compliance due to the fragmented gas industry and lack of full traceability across the supply chain.

Despite these concerns, the U.S. remains the EU’s top LNG supplier, accounting for 45% of the bloc’s LNG imports in 2024—equivalent to 16.5% of total gas and LNG imports. A recent virtual meeting between the European Commission and U.S. LNG firms underscored industry concerns and ongoing dialogue.

While the European Commission declined to confirm whether it is adjusting its methane rules, it noted ongoing discussions with stakeholders. Methane, the second-largest contributor to global warming after CO₂, remains a critical focus of EU climate policy.