It was great to feature in the Financial Times article about the EU’s methane regulation and its implications for LNG imports. I wanted to expand on some key points raised in the article.
The EU’s Methane Regulation: Key Challenges
The EU’s methane regulation, enacted last August, aims to reduce emissions from fossil fuels imported into the bloc—a vital step for climate action. However, the LNG industry has raised significant concerns about implementation:
- Data Collection: The requirement to collect methane data at the producer level is complicated for LNG, as gases are often co-mingled before entering LNG plants at the custody transfer point.
- Compliance Challenges: Many intermediaries are concerned that compliance under the current framework might prove “impossible,” potentially impacting LNG imports to Europe.
MiQ’s Perspective and a Path Forward
At MiQ, we support methane regulations but recognize that for these policies to succeed they must be both ambitious and pragmatic. In the Financial Times article, I proposed a pragmatic solution: “Perhaps a solution is to implement a type of ‘certificate of origin’ scheme similar to those in the renewable energy sector, such as RECs (Renewable Energy Certificates) or GOs (Guarantees of Origin).”
MiQ has already adapted and refined the REC model to address the unique complexities of international gas supply chains and LNG markets. This flexible yet verifiable system offers a clear path to tracking methane emissions while supporting industry adoption.
Moving Forward
These regulations come at a critical juncture, when finding the right balance between climate ambition and energy security is paramount. MiQ remains committed to working with stakeholders to develop impactful and actionable solutions for reducing methane emissions.
For those interested in this evolving conversation, I highly recommend reading the full article. Our mission remains clear: to tackle methane emissions in the LNG sector without compromising Europe’s energy stability remains MiQ’s objective.