U.S. and Qatar tell EU methane rules risk gas supply

The United States, Qatar, Algeria, and Nigeria warned the European Union that its methane regulation creates compliance barriers for LNG suppliers and could reduce future gas deliveries. The letter said exporters and importers will avoid contracts that knowingly violate EU law, adding that supply reductions and price increases are certain.

Background on the Regulation The EU adopted the methane regulation two years ago.

It requires both domestic and foreign gas suppliers to measure and cut methane emissions starting this year. The measure covers nearly 100 percent of natural gas and applies to all energy suppliers doing business with the bloc.

EU energy ministers are scheduled to discuss the policy at a meeting on Friday. The letter was also signed by Algeria and Nigeria, two other major gas suppliers to Europe. The EU receives nearly 60 percent of its LNG imports from the United States.