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EU methane rules could spark European gas crunch, say US and Qatar

Financial Times Companies •
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US and Qatar officials warn EU methane rules could tighten gas supply ahead of the EU energy ministers summit. They claim the rules will cut imports from Qatar, raising European consumer prices and jeopardising contracts worth billions, prompting renegotiations.

EU's new methane measurement and reporting standards aim to cut emissions, targeting a 30% reduction by 2030. Industry groups say compliance costs will force producers to cut output, risking a shortfall of up to 5 bcm per year. Critics cite Norway cuts, hinting EU impact may grow. Qatar, the EU's top LNG supplier, says it will meet demand but acknowledges higher costs.

Analysts warn the clash could shape broader energy‑security talks as Brussels balances climate ambition with reliance on imported gas. If Qatar scales back shipments, spot LNG prices may surge, squeezing European utilities already coping with tight supply. The episode underscores the friction between environmental policy and market stability.