USConGen Duesseldorf

Politico highlights risks facing the EU energy market this winter -- pro.politico.eu/news/rome-go…. But they missed one Brussels can still fix. Winter is coming. If the EU wants to mitigate energy price and supply volatility, delay implementation of the EU Methane Regulation’s importer requirements set to take effect January 2027. It won’t solve all of Europe’s energy cost problems. But it could solve one risk. The compliance framework is not operational and not defined. This creates uncertainty precisely when companies are making decisions about Europe’s 2027 energy supply. Industry has warned Brussels about this for nearly two years. Most recently, an August 31 joint statement signed by 21 energy associations put it plainly: “Security and affordability of supply are directly exposed.” We're not arguing against methane regulation, but it needs to be implementable.  That means ensuring the mandatory implementing acts, methodologies, verification processes, and standards are in place before requiring the market to comply. With historically low winter gas storage volumes, the phase-out of Russian LNG in January 2027, geopolitical conflicts, and procurement decisions for 2027 being made now, waiting until supply problems show up in Europe before acting on the EU methane regulation is waiting too long. More supply options + less uncertainty = cheaper oil and gas There is significant support for a delay: nearly 20 EU member states, MEPs, and major energy suppliers have called for postponement. Even the European Commission has recognized the regulatory risk, recommending that member states refrain from applying penalties for importer reporting violations from 2027–30. But removing penalties doesn’t solve the underlying problem. The legal reporting obligations remain. As the industry letter puts it: “The objective should not be to manage non-compliance; it should be to make compliance possible.” Delay the EU Methane Regulation’s importer requirements—and use the time to make compliance workable!