DOE and EPA Letter to European Commission Asking to Initiate Discussion on Regulatory Equivalence for Natural Gas

In response to the European Union (EU)’s new regulations requiring extensive documentation of reduced methane emissions for fossil fuels produced in, or imported to, the EU, the Department of Energy (DOE) and the Environmental Protection Agency (EPA) co-signed a letter addressed to European Commission Director-General for Energy Juul Jorgensen, requesting determination of “equivalency” for US exports of liquefied natural gas (LNG) to Europe.  The US is a leading exporter of LNG to Europe. 

The new EU regulations will require measurement, monitoring, reporting and verification (MMRV) of emissions associated with the production of natural gas imports. The goal of the requested discussion with the EU is to determine conditions under which US natural gas, produced and exported pursuant to domestic federal regulations and policies, could be considered “equivalent” to fuel produced under the EU’s new regulations. 

The letter, signed by DOE Assistant Secretary for Fossil Energy and Carbon Management, Brad Crabtree and EPA Assistant Administrator for the Office of Air & Radiation Joseph Goffman, requests an initiation of an equivalence determination process.  The actual process of establishing such “equivalency” has not yet been established by the EU. However, the process is likely to take more than a year.  The letter encourages DG ENER to establish transparent consultative procedures that allow for stakeholder feedback. The letter states, “We are confident that the United States’ extensive domestic regulatory regime to monitor, measure, and reduce greenhouse gas emissions (especially methane) from the oil and gas sector is consistent with the goals of the EU’s regulations.”

A successful conclusion of equivalency negotiations based on current U.S. regulations will ensure that US LNG producers continue to have access to, and remain competitive in, the European market. 

Revised November 14, 2024