Overview

• The EU is drafting technical adjustments to its methane emissions law to deem U.S. LNG exports as meeting 'equivalent' standards without weakening the overall regulation.
• These proposed flexibilities are part of broader trade negotiations aimed at averting planned tariffs by the Trump administration on European goods.
• The European Commission recently held discussions with U.S. LNG exporters, addressing compliance challenges tied to the fragmented nature of the U.S. gas industry.
• U.S. plans to roll back methane reporting requirements risk complicating efforts to establish compliance equivalence under EU rules.
• The EU aims to balance its climate commitments with energy diversification goals, as it works to phase out Russian gas imports by 2027.