Oil and gas companies urged the European Union on Monday to pause its methane emissions law, warning it could disrupt Europe's fuel imports when tougher provisions kick in next year.
The call from industry comes after the US Government demanded the EU exempt US oil and gas from the rules. Brussels has since offered companies more flexible compliance options but declined to roll back the policy, a central pillar of its climate strategy.
An industry-backed study by Wood Mackenzie, published on Monday, said up to 43 per cent of EU gas imports and 87 per cent of EU crude oil imports could struggle to meet the EU rules from 2027, exposing importers to heavy fines and risking supply gaps if producers are deterred from shipping fuel to Europe.
IOGP and fuel manufacturing group FuelsEurope called on Brussels to pause and amend the law.
"The EU cannot afford a self-made regulatory supply shock, even more so in the current geopolitical context," said Francois-Regis Mouton de Lostalot, Managing Director of IOGP Europe, whose members include ExxonMobil, Chevron, BP and TotalEnergies.
Oil and gas prices have surged this month in response to the US and Israeli war on Iran, adding short-term pressure on governments already navigating Europe's phase-out of Russian energy imports. Most EU oil and gas now comes from Norway and the US.
The EU methane law requires that, from January 2027, imported gas must comply with monitoring and verification rules equivalent to Europe's, or meet a voluntary industry standard known as "Oil and Gas Methane Partnership 2.0 level 5". The aforementioned companies are all part of the OGMP initiative.
A European Commission spokesperson did not immediately respond to a request for comment.
(Reporting by Kate Abnett. Editing by Mark Potter)
