US LNG exporters, seeking to meet overseas import markets’ standards, plan to continue to monitor and curb their methane emissions, despite President Donald Trump's plans to roll back climate regulations, two trade groups told Reuters.
Last week, the Environmental Protection Agency (EPA) announced the "most consequential day of de-regulation" in US history, unveiling 31 de-regulatory 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 greenhouse gas methane, as well as a decision to review the endangerment finding, the legal foundation for all US climate regulation that identifies greenhouse gases as pollutants.
For companies seeking to export US LNG to European Union and Asian buyers, 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.
However, some smaller oil and gas producers have been opposed to stringent standards for methane emissions.
"Whatever changes are made to how the US 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 US 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 also revealed that 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 emission data for some of their gas imports.
The European Commission held an online meeting with US LNG companies earlier this month to field questions about compliance with EU rules. EU energy policy head, Dan Jorgensen, also met companies to discuss their concerns at CERAweek in Houston.
A draft of the agenda for the EC's briefing of US companies, seen by Reuters, said participants would discuss "potential implementation challenges" regarding the EU methane rules.
Before Biden left office, his administration asked the EU to ensure US LNG shipments that met his EPA's methane regulations would automatically comply with Europe’s standards for imports.
Hutchison said a rollback of those US methane rules could complicate trade flows.
Several US companies have already taken steps to certify that the LNG being exported is transparent around its methane emissions intensity, using third-party certification, such as Methane Intelligence (MiQ).
Georges Tijbosch, MiQ CEO, claimed companies that account for around 20% of US gas production uses its 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 US Chamber of Commerce's Global Energy Institute.
"That creates incentives for operators to keep reducing methane," he said.
