Energy Majors Warn EU Climate Push Could Gut Supply Security

Core Viewpoint - The European Union's stringent regulations on energy imports, particularly the ban on Russian natural gas by 2027, may jeopardize its energy security as it attempts to regulate every aspect of energy products [1][2]. Regulation Impact - The EU has implemented various legislative measures aimed at achieving net-zero emissions, but these measures are undermining energy security, especially in light of the ongoing geopolitical tensions following the Russian invasion of Ukraine [2]. - The new EU Regulation on reducing methane emissions, effective from August 2024, along with the proposed Corporate Sustainability Due Diligence Directive (CSDDD), is creating additional barriers for LNG imports to Europe [3][5]. Compliance Challenges - Starting in January 2027, LNG importers will be required to prove that their imported crude oil, natural gas, or coal comes from jurisdictions with equivalent monitoring, reporting, and verification standards as those in the EU [6]. - The gas industry argues that verifying emissions from various sources within an LNG cargo is impractical, particularly for U.S. gas produced from numerous wells across the country [7]. Industry Response - Major LNG exporters, including the U.S. and Qatar, are urging the EU to reconsider or eliminate these regulations to safeguard energy security and maintain LNG imports from key suppliers [4]. - Industry representatives have expressed ongoing concerns regarding the feasibility of the EU's regulatory framework since its inception [8].