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The European Commission is considering suspending methane fines for oil and gas producers during gas shortages, emergency storage situations, or major oil supply shocks, according to a leaked document seen by Euronews.
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The draft text, circulated to EU member states, says penalties should not jeopardise gas or oil supplies during periods of market stress or crisis — a move likely to be seen as a concession to mounting pressure from industry and international partners.
Oil and gas producers, along with US Energy Secretary Chris Wright, have previously called on Brussels to scrap or soften the methane rules, warning they could disrupt trade and investment flows, especially during the current energy crisis.
With Europe increasingly dependent on imported liquefied natural gas (LNG) — much of it from the United States — Brussels is concerned that strict enforcement could strain relations with suppliers, deter investment or divert cargoes to more lucrative Asian markets.
A Commission spokesperson had previously said the EU executive was finalising guidance to ensure the “uniform and coordinated implementation” of penalties under the methane regulation in a way that does not threaten security of supply.
Pressure has also intensified following a March study by industry groups and consultancy Wood Mackenzie, which found that the methane rules could render 43% of EU gas imports and 87% of oil imports non-compliant from 2027 onwards.
Critics, however, are likely to argue that the EU is attempting to avoid a confrontation with major exporters and energy companies by embedding broad flexibility into the enforcement system — potentially undermining the credibility of the legislation itself.
EU countries adopted methane rules in May 2025, introducing the bloc’s first framework for measuring, reporting and verifying methane emissions in the energy sector as part of efforts to curb one of the most potent greenhouse gases.
Methane arises from fossil fuel production or livestock digestion, and is a highly potent greenhouse gas, with a global warming potential over 80 times greater than carbon dioxide over a 20-year period. The International Energy Agency (IEA) says the gas is responsible for about 30% of the rise in global temperature since the Industrial Revolution.
Watering down methane rules
In response to growing industry pressure, the Commission had already delayed parts of the regulation from 2025 to 2027. Critics say the latest proposal goes even further, weakening the financial incentives designed to ensure compliance and robust monitoring.
The Commission’s draft proposal to national authorities encourages regulators to consider everything from LNG availability to storage obligations before imposing fines, stressing that financial penalties should not endanger continuity of supply, worsen gas crises or undermine storage obligations.
If confirmed, the measure would let major energy suppliers claim that punishing them too harshly could disrupt Europe’s energy market – even if the Commission proposal to scrap penalties is set to be temporary.
Inside the EU’s methane rules
The EU’s methane legislation requires energy operators to detect and repair methane leaks, measure emissions at source level and implement mitigation measures across their infrastructure.
The rules also apply to EU energy imports, since the bloc’s methane rules introduced global monitoring tools to increase transparency from oil, gas, and coal entering the bloc.
Energy operators are also required to draw up monitoring reports to be checked by independent accredited verifiers, as well as carry out surveys of methane leaks in different types of infrastructure.
In cases where methane leak levels are above a certain threshold — due to ageing infrastructure, poor maintenance or accidental damage — operators will need to repair or replace within stipulated time limits.
Oil, gas and coal companies must also compile inventories of inactive and abandoned assets, including wells and mines, to monitor residual methane emissions.
US Energy Secretary Wright told an audience at the IEA in February that the US’s methane performance was “outstanding”, noting it was driven by social forces and not regulation.
“Methane emissions went down in the US over the past years, not because of regulators but investment concerns. We’re about innovation, not regulation, and we will continue to drive down methane intensity with better methodology,” Wright said.
In the same month, several US Democratic lawmakers called on the EU to uphold its methane rules and avoid exempting American energy operators if US domestic standards lack sufficient accuracy or enforcement.
They argued that setting clear, consistent rules for all suppliers is “essential to reduce trade barriers” between countries with higher environmental standards for oil and gas, and to reward producers that deploy readily available methane-reduction technologies.
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