New EU Law on Methane Emissions Confirmed. What does it mean for Suppliers and Imports?

As COP28 approaches, the European Union is making bold strides in its fight against methane emissions, especially in the energy sector.  

In a historic move, the European Parliament, Commission, and Council have come together, reaching a landmark provisional agreement on the EU’s inaugural legislation.  

Additionally, the objective is to slash methane emissions both within Europe and across its international supply chains.  

What does this mean for the oil and gas suppliers?  

How will this impact oil and gas imports?  

In this blog we unpack exactly how the new regulation came about, as well as the projected impact on the market and imports following its rollout.  

The new methane regulation is also a key component in achieving the objectives of the European Green Deal, was initially proposed in December 2021.  

The European Parliament, demonstrating strong support for this initiative, voted overwhelmingly in favour of this new law to mitigate methane emissions in the energy sector.  

The vote set the stage for intensive negotiations with the EU Council to finalise the legislation’s text. 

Suppliers 

The new law will comprehensively address direct methane emissions from energy sources including oil, gas, coal, and biomethane once they are integrated into the gas network. 

It will also mandate that operators must regularly report detailed information on methane emissions.  

This will stem from source level to the relevant authorities, covering both operated and non-operated assets. 

Additionally, oil and gas companies will be required to conduct frequent inspections of their equipment.  

This will involve swiftly identifying and rectifying any methane leaks within EU territories, within specified deadlines. 

Imports 

The EU, renowned for being the world’s leading importer of natural gas and a major importer of oil and coal, will need to significantly adapt its approach in the wake of the new regulation.  

With the new policy including the creation of a methane transparency database – a platform where data on methane emissions from both importers and EU operators will be openly accessible to the public – transparency and accountability is now under the spotlight.  

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