The United States and Qatar have urged the European Union to reconsider its proposed methane emissions regulations, warning that the rules could lead to significant disruptions in gas supplies and higher prices across the bloc. In a joint letter addressed to European Commission President Ursula von der Leyen and European Council President António Costa, US Energy Secretary Chris Wright and Qatari Energy Minister Saad al-Kaabi expressed concerns that most global oil and gas exporters would be unable to comply with the new monitoring and reporting standards outlined in the draft regulation.

The letter, circulated ahead of an EU energy ministers meeting on Friday, emphasized that exporters and importers are reluctant to enter contracts that could violate EU law, citing a "narrow window" for revising the rules since many purchasers have already secured supplies for delivery in 2027. The US and Qatar, the world’s leading liquefied natural gas (LNG) exporters, were joined by Algeria and Nigeria in signing the appeal, signaling broad opposition among key suppliers.

“Significant supply and price impacts are a certainty,” the letter stated, highlighting the potential risks to European energy security. The intervention builds on previous US efforts to temper the regulation’s scope, with Andrew Puzder, US ambassador to the EU, having warned that the measure might trigger an energy crisis.

In response, the European Commission has indicated plans to soften the rules by issuing guidance to member states advising against penalizing exporters until 2030. Despite this, some member countries, including the Czech Republic and Slovakia, have advocated for a postponement of the regulations by at least three years.

However, these supply warnings have been contested. Consultancy Rystad Energy, commissioned by Environmental Defense Fund Europe, released modeling that suggests methane-compliant gas supplies exceed the EU’s current import volumes by a factor of three. The study found no evidence linking the proposed rules to recent price increases, attributing higher costs instead to geopolitical tensions stemming from the US and Israeli conflicts with Iran.

Supporters of the legislation argue that the methane regulations would enhance Europe’s energy security by accelerating the transition away from fossil fuels and reducing greenhouse gas emissions. Methane, a potent climate pollutant, is a central focus of the bloc's strategy to combat climate change and meet its environmental commitments.

The lobbying efforts from major LNG suppliers coincide with a recent World Bank report revealing that flaring—the burning off of excess natural gas by oil and gas producers—rose by 6 percent in 2023 to 167 billion cubic meters, the highest level since 2019. This practice not only contributes significantly to climate change but also wastes a resource valued at approximately $54 billion, surpassing the volume of LNG exported through the Strait of Hormuz last year. The report underscores ongoing environmental challenges linked to fossil fuel production amid tightening regulatory scrutiny.