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EU to waive methane penalties for oil and gas firms for three years
The European Commission said the move is linked to global energy-market tightness amid the near-closure of the Strait of Hormuz, and it aims to ease fears about meeting supplier emissions requirements starting January 2027.
The European Commission has told EU governments to consider waiving penalties for oil and gas companies that breach the bloc’s methane emissions law for the next three years, according to OilPrice.
While the guidance is not binding, the outlet reports that member states are widely expected to follow the advice, which comes after the United States, Qatar, oil and gas industry groups, and most EU countries raised concerns about the strict rules.
Several states argued that Europe might struggle to secure fuel supplies once the requirements take effect in January 2027, especially if gas imports do not meet the EU’s emissions standards.
The Commission tied the change to what it described as global energy-market tightness related to the prolonged near-closure of the Strait of Hormuz, a trade corridor that, when fully operational, carries an estimated 20.0% of global petroleum liquids and gas supply, the report says.