EU methane rule: Germany warns of risk to gas imports and jet fuel

Germany, several EU member states, and key supplier nations are warning of the consequences the EU methane regulation will have for energy imports starting in 2027. Consequently, on June 26 in Luxembourg, Federal Minister for Economic Affairs Katherina Reiche called for the regulation to be postponed or suspended. The EU regulation applies to natural gas, crude oil, and coal—and, according to Berlin, also to petroleum products such as kerosene. Critics fear that supply contracts, prices, and security of supply could be jeopardized, as many producers might be unable to provide the required documentation on time.


Methane regulation tightens requirements for energy imports

The EU regulation entered into force in 2024 and aims to reduce emissions from oil, gas, and coal. Methane has a significantly stronger impact on global warming than carbon dioxide, though it remains in the atmosphere for a shorter period. The European Commission therefore views these requirements as part of its 2030 climate goal.

The methane rule affects gas, oil, coal, and kerosene. States warn of higher prices and insecure supply chains.
The methane rule affects gas, oil, coal, and kerosene. States warn of higher prices and insecure supply chains.
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However, the rules affect more than just production facilities in Europe. Importers are required to report on the origin of supplies, transport routes, and measures taken to prevent methane leaks. From 2027, they must also demonstrate that their suppliers adhere to comparable standards for measurement, reporting, and verification. Reporting on methane intensity is set to begin in 2028, followed by the introduction of a limit value in 2030.

Reiche warns of consequences for gas and jet fuel

Reiche linked the methane regulation directly to Germany’s energy supply. She stated: “We need, at the very least, a postponement or suspension of the methane regulation to ensure the Federal Republic of Germany can reliably secure imports of gas as well as petroleum products like jet fuel. We will have to hold very serious discussions with the Commission, as we absolutely cannot jeopardize our security of supply.” From Berlin’s perspective, implementation could hinder deliveries if producers fail to provide the required documentation on time.

Initially, eleven EU member states—including the Czech Republic, Slovakia, Poland, Italy, and the Netherlands—called for a delay of at least three years. Germany has since joined in this criticism, as the federal government considers the deadlines too tight. While the EU Commission has signaled a willingness to ease implementation requirements, it refuses to renegotiate the core of the regulation.

Supplier nations and industry warn of shortages

Major energy exporters are also challenging the methane rule. On June 23, the US, Qatar, Nigeria, and Algeria warned top EU officials of potential disruptions to oil and gas supplies. They also argue that many exporting countries would be unable to meet the required measurement, reporting, and verification standards in time. The timing is particularly critical, as importers are already sourcing energy for deliveries scheduled for the coming year.

The International Association of Oil & Gas Producers (IOGP)—whose members include companies such as Chevron, BP, ExxonMobil, and ConocoPhillips—had already called for amendments back in April. The association notes that, in addition to gas and oil importers, coal operators, infrastructure operators, and domestic producers will also be affected. According to an industry analysis, large portions of EU gas imports and almost all crude oil imports could face compliance issues starting in 2027.


Dispute over security of supply remains unresolved

However, environmental groups and some analysts dispute the warnings of a supply crisis. They point to rising LNG supplies and potential suppliers with superior measurement systems. From this perspective, the regulation actually strengthens Europe’s position by compelling producers to adopt more transparent supply chains.

For industry and energy suppliers, however, the conflict has practical implications. In the absence of recognized verification bodies, clear methodologies, and reliable data, the legal risk associated with new contracts increases. Consequently, the issue is not merely one of climate protection; it is a question of whether regulation is outpacing the availability of technical verification. It is precisely at this juncture that an emissions regulation could turn into a problem affecting prices, refineries, and security of supply.

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