Overview

• The European Commission is drafting technical flexibilities to classify U.S. LNG exporters as compliant with EU methane standards without weakening its emissions law.
• This move is part of broader trade negotiations aimed at preventing President Trump's planned tariffs on EU goods.
• The EU methane regulation, effective this year, requires oil and gas importers to monitor and report associated methane emissions.
• U.S. exporters face challenges complying due to the fragmented nature of the U.S. gas industry, which complicates emissions tracking across supply chains.
• Trump's initiative to eliminate U.S. methane reporting rules could hinder the EU's ability to justify equivalence for U.S. LNG under its regulations.