U.S. LNG exporters stick with methane measures despite EPA rollbacks
- Trump Environmental Protection Agency (EPA) last week rolled back dozens of regulations
- EU retains stricter regulations for greenhouse gas (GHG) emissions
- Japan and South Korea also seek emissions data for LNG imports
- Satellites still monitor emissions, even if the EPA does not
U.S. liquefied natural gas (LNG) exporters, seeking to meet standards of overseas import markets, plan to continue to monitor and curb their methane emissions despite U.S. President Trump’s plans to roll back climate regulations, two trade groups said.
The EPA last week announced the "most consequential day of deregulation" in U.S. history, unveiling 31 deregulatory actions to reverse former President Joe Biden's climate-focused agenda.
Among the moves was a rollback of a requirement for companies to report their annual emissions of the powerful GHG methane, as well as a decision to review the endangerment finding, the legal foundation for all U.S. climate regulation that identifies GHG as pollutants.
For companies seeking to export U.S. natural gas to customers in the EU and Asia, the rollbacks are unlikely to have an effect on operations, according to Fred Hutchison, president of industry group LNG Allies, whose members include LNG exporters and project developers and natural gas producers.
Some smaller oil and gas producers have been opposed to stringent standards for methane emissions.
"Whatever changes are made to how the United States regulates methane, including the endangerment finding, the EU methane regulation remains unchanged," Hutchison said, referring to European import standards. "Our members have invested tens of millions of dollars reducing their emissions all before any U.S. regulations were in place. They are committed to continuing to drive down their emissions," said Chris Treanor, representing LNG coalition PAGE (Partnership to Address Global Emissions), whose members include gas producer EQT and pipeline company Williams.
Hutchison of LNG Allies said he is traveling to Brussels next week to discuss compliance with EU rules.
Starting this year, the EU methane rules oblige importers of oil, gas and coal to report the methane emissions associated with those imports. Japan and South Korea are also seeking methane emissions data for some of their gas imports.
The U.S. is the world's largest exporter of LNG. It sells into Europe and South Korea and has plans to sell into the Japanese market.
The European Commission held an online meeting with U.S. LNG companies this month to field questions about compliance with EU rules. EU energy policy head Dan Jorgensen also met companies to discuss their concerns at an energy conference in Houston, Texas (U.S.) last week.
A draft of the agenda for the commission's briefing of U.S. companies, seen by media, said participants would discuss "potential implementation challenges" regarding the EU methane rules.
Before Biden left office, his administration asked the EU to ensure U.S. LNG shipments that met his EPA's methane regulations would automatically comply with Europe’s standards for imports.
LNG Allies' Hutchison said a rollback of those U.S. methane rules could complicate the trade flow.
Several U.S. companies have already taken steps to certify that the gas they are exporting is transparent around its methane emissions intensity, using third-party certification like Methane Intelligence (MiQ).
Georges Tijbosch, CEO of MiQ, said companies that account for around 20% of U.S. gas production use MiQ certification.
The launch last year of satellites to monitor methane emissions could also pressure oil and gas producers to curb their pollution.
"Regardless of regulations, there are still eyes in the sky - satellites that are tracking emissions to the source level," said Dan Byers, vice president for policy at the U.S. Chamber of Commerce's Global Energy Institute. "That creates incentives for operators to keep reducing methane."
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