EU Considers Easing Methane Rules to Smooth U.S. LNG Trade
EU can ease methane rules to facilitate U.S. LNG imports during trade negotiations, reconciling climate objectives with energy security and transatlantic relations
The European Union is considering adjustments to its methane regulations to accept U.S. liquefied natural gas (LNG) exports, in an effort to increase trade ties and avoid the threat of tariffs from the administration of President Donald Trump.
With the EU and the U.S. preparing for trade talks, energy is becoming an important area of convergence. President Donald Trump has repeatedly urged the EU to boost purchases of American oil and gas to narrow its trade surplus with the U.S., while European Commission President Ursula von der Leyen has signaled readiness to ramp up U.S. LNG imports as part of the bloc’s plan to eliminate Russian gas by 2027.
To address this challenge, the European Commission is weighing recognition of the U.S. methane standards as equivalent, to enable U.S. LNG to comply with EU standards without undermining the bloc’s green goals. The action comes within wider trade talks, with cooperation on energy as a focal element.
The United States is now the largest supplier of LNG to the EU providing 45% of its LNG imports in 2024, as Europe aims to cut dependence on Russian energy sources. Harmonizing methane rules would guarantee future energy security for the EU and enhance the interests of U.S. exporters.
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The EU’s new methane regulation implemented this year compels importers to track and report methane emissions. From 2027, adherence to comparable methane standards will be compulsory in signing new supply agreements. Nevertheless,
American gas producers with operations in a fractured system threaten that they do not possess the infrastructure for tracking emissions on complicated supply chains.
The EU strategy aims to balance these climate goals with geopolitical and trade interests, as US LNG continues to displace Russian supplies after the 2022 invasion of Ukraine.
