The US government is intensifying efforts to align its methane regulations for liquefied natural gas (LNG) with the European Union’s (EU) new standards. US officials sent a second letter to the EU, urging recognition of the equivalence between US and EU methane emission standards for LNG imports.
Efforts to Secure LNG Trade with Europe
In the letter, the Joe Biden administration underlined the necessity of ensuring US LNG supplies meet both US and EU methane standards. The methane emissions rules in the United States by the Environmental Protection Agency are effective from 2024.
However, the EU’s oil and gas import limits of methane, set to come into effect from 2030, will force international suppliers to reduce such leaks of the super greenhouse significantly.
The US will target LNG exports to Europe to adhere to the EU’s methane standards. The targets are set to be implemented shortly. This would help maintain the burgeoning trade of LNG between the US and Europe, especially after Russia’s invasion of Ukraine.
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EPA’s Methane Rules
Assistant Administrator for Air and Radiation Joe Goffman noted that the letter underlines the comprehensiveness of US emissions standards, their implementation, and the transparency of reporting mechanisms. The letter emphasizes that such measures make methane management accountable.
Co-signatory to the letter is assistant secretary at the US Department of Energy’s Office of Fossil Energy and Carbon Management, Brad Crabtree. US officials also pointed to the potential emissions reductions from the EPA’s methane standards in the letter. The measures will cut 58 million tons of methane emissions between 2024 and 2038.
Methane Emissions Reduction Potential
The new rules of the EPA to reduce methane leaks include provisions for new and existing oil and gas facilities. The WEC rule is also expected to reduce 34 million metric tons of CO2-equivalent emissions through 2035. These measures are central to the climate agenda of the Biden administration and are designed to curb the environmental impact of natural gas production.
However, the EU has not specified its limits for methane content in imported LNG. It has not defined how it will accept domestic methane regulations in other countries as equivalent.
Future of LNG Exports and Climate Policy
While the US strives to harmonize with EU regulations, its future for LNG exports is far from certain. The US Department of Energy recently halted new permits for LNG exports citing concerns over increasing greenhouse gas emissions. This has sent alarm bells ringing as it may lead to higher prices for US consumers.
On the other hand, former President Donald Trump, a longtime vocal critic of climate change regulations, has vowed to reverse much of what Biden established by way of environmental rule.
The US and EU are engaged in an ongoing dialogue about methane emissions standards for LNG exports. This will play a key role in shaping future trade relations.
