Discussions on the convergence of environmental regulations between the United States and the European Union are intensifying, particularly regarding liquefied natural gas (LNG). A recently obtained letter reveals that U.S. officials have approached the European Commission to ensure that U.S. LNG exports meet new European standards on methane emissions.
The text, dated October 28, was signed by Brad Crabtree, director of the fossil energy office at the US Department of Energy (DOE), and Joseph Goffman, head of the air office at the Energy Agency. Environmental Protection (EPA). Recipients include Ditte Juul Jorgensen, director-general for energy at the European Commission.
American LNG is a strategic resource for Europe, particularly after the reduction of Russian gas flows in 2021. However, the European framework, which came into force last August, introduces ambitious requirements to reduce methane emissions. By 2027, imports will have to meet defined emissions intensity thresholds, with monitoring obligations from 2025.
A challenge for American infrastructure
American LNG exporters face a major challenge: collecting the data necessary to comply with European requirements. Indeed, the gas transportation system in the United States relies on a vast network of pipelines, making it difficult to trace emissions at production sites.
To respond to these challenges, the American authorities are highlighting existing domestic measures. The Inflation Reduction Act of 2022 established a tax on methane emissions, applicable to oil and gas producers. Although this measure is contested by industrial groups such as the American Petroleum Institute, it constitutes a lever for aligning American practices with European ambitions.
Towards regulatory harmonization
European regulations provide exemptions for countries demonstrating that their national regulatory frameworks are equivalent to Union standards. This flexibility represents an opportunity for the United States, provided that it strengthens its control and transparency mechanisms.
Sector players, such as Cheniere Energy, the main exporter of American LNG, are showing their support for these developments. The company recently published a scientific study on its supply chain emissions and committed to reducing its methane intensity.
Anatol Feygin, chief commercial officer of Cheniere, said during a webinar that these efforts will extend the viability of LNG in international markets, while meeting growing sustainability requirements.
Transatlantic cooperation on the move
Dialogue between governments and regulators on the two continents will be crucial to remove uncertainties and ensure a stable gas supply. American officials expressed confidence in the United States' ability to meet European objectives, while calling for increased collaboration to harmonize standards.
This initiative illustrates an important step in the global energy transition, where international cooperation becomes essential to align environmental policies with ambitious climate goals.
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