A January 2024 “pause” on LNG exports was lifted after a slew of legal challenges to the ban, allowing US producers to resume shipments. The temporary halt pushed EU companies to seek out other suppliers to maintain dependable energy sources, even though the US has been the primary supplier of LNG to the EU for the last three years. Imports provide ~80% of the oil and gas used in the EU and often come from countries with little to no standards for emissions intensity.

EU LNG – Methane Intensity Limits

In May 2024, a new EU methane emissions reduction Regulation was adopted as part of the EU Methane Strategy program. The new rules, published in July, will become fully effective in 2030. These monitoring, reporting and verification rules apply to providers of domestic and imported energy: Imported gas that exceeds a methane intensity maximum will incur financial penalties. Emissions and methane intensity metrics and methodologies will become a standard consideration in LNG contracts.

This EU standard for imported energy is unique – set by energy users, rather than by producers.

EU rules on methane emissions are based on the Oil and Gas Methane Partnership 2.0 (OGMP 2.0) framework and determination of methane emissions locations and volumes. Additional data will lead to a shift from emission estimates to more definite measurements and verification of methane emissions.

The intent of this Regulation is to halt avoidable methane emissions (within the EU and from global supply chains) and to minimize methane leaks from EU fossil fuel operators.

The rules require:

• Improvements in measuring, reporting, and verifying methane emissions
• Rapid methane emissions reductions through compulsory leak detection and repair as well as bans on some venting and flaring
• Transparency on methane – information on exporting company/country measurements, reporting, and abatement of methane emissions and determination of methane intensity

Requirements for Producers

Requirements for oil and gas companies include mandatory equipment surveys to detect leaks: Any leaks must be immediately repaired (5 to 15 days) and then monitored.

Venting and routine flaring are prohibited. Venting is allowed only for exceptional circumstances or safety reasons, and flaring is allowed (with restrictive rules) only in cases where re-injection, on-site utilization, or transport are not possible/feasible.

Regulations for coal production aim to phase out methane venting and flaring while maintaining mine safety.

The rules also mandate that EU member countries create mitigation plans for abandoned coal mines and inactive oil and gas wells.

The methodologies for calculating methane intensities and maximum allowable limits still need to be finalized through additional secondary EU legislation. In the short term, some countries and companies are relying on certified gas to reduce methane emissions. The EU will require sharing of emissions data beginning in 2025.

American Oil & Gas – Clean, Reliable Energy

With the pause on exports lifted and new regulations set to go into effect mandating low emissions LNG in Europe, US producers are well positioned to continue to produce the cleanest natural gas on the planet.

For operators looking to efficiently and effectively reduce their emissions at the wellhead, BioSqueeze provides a range of innovative well integrity solutions to remediate even the most difficult to solve challenges.