Nigeria joins U.S., Qatar and Algeria to oppose EU methane rules

Nigeria has joined the United States, Qatar and Algeria in urging the European Union to revise planned methane emissions regulations, warning that the rules could disrupt oil and gas supplies to Europe and trigger higher energy prices.

In a joint letter addressed to European Commission President Ursula von der Leyen, European Council President António Costa and EU member states, the four countries argued that the EU’s Methane Regulation, scheduled to take effect from January 2027, risks excluding a large share of global energy supplies from the European market.

The letter was signed by U.S. Energy Secretary Chris Wright, Qatar’s Minister of State for Energy Affairs Saad Sherida Al-Kaabi, Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, and Algeria’s Minister of State for Hydrocarbons, Mohamed Arkab.

The signatories described themselves as some of Europe’s largest energy suppliers and called for urgent amendments to the regulation before implementation begins.

The EU Methane Regulation is designed to reduce methane emissions associated with oil and gas production and imports into Europe.

Methane is a potent greenhouse gas and is considered one of the biggest contributors to global warming after carbon dioxide. The regulation requires exporters to meet strict methane measurement, reporting and verification standards before their products can enter the European market.

However, Nigeria and the other exporting countries argue that many producers around the world will struggle to comply with the requirements within the proposed timeline.

According to the letter, an industry analysis found that nearly all oil imports into the EU and a substantial portion of natural gas imports could be deemed non-compliant when the rules take effect in January 2027.

The countries warned that this could reduce available supplies to Europe and increase energy costs for consumers and industries.

“Significant negative supply and price impacts are a certainty,” the letter stated.

Nigeria’s stake

The development is particularly significant for Nigeria, which is seeking to expand gas exports as part of its “Decade of Gas” strategy and position itself as a reliable supplier to Europe.

European demand for alternative gas sources increased sharply after Russia’s invasion of Ukraine disrupted traditional supply routes and forced the continent to diversify its energy imports.

Nigeria has since sought to deepen energy ties with Europe through exports of liquefied natural gas (LNG) and proposals for new gas infrastructure projects.

Industry analysts have warned that compliance costs associated with the EU methane rules could create additional hurdles for producers in developing countries already facing financing, infrastructure and regulatory challenges.

The joint letter stressed that energy producers in the four countries are already investing heavily to reduce methane emissions and intend to continue improving environmental performance.

However, the signatories argued that additional time is needed to develop workable compliance mechanisms.

What changes are being requested?

The four countries urged the EU to adopt a temporary “stop-the-clock” mechanism that would delay enforcement while technical and compliance issues are resolved.

They also called for existing and newly signed energy contracts to be protected during the transition period and requested the suspension of penalties for non-compliance until practical reporting systems are in place.

According to the letter, oil and gas importers have already begun purchasing supplies that will be delivered in 2027, creating uncertainty for contracts worth billions of euros.

The signatories warned that non-binding guidance from the European Commission may not be enough to reassure exporters and importers because companies remain exposed to legal and financial risks if they enter agreements that could violate EU law.

The dispute highlights growing tensions between climate regulations and energy security concerns as governments attempt to reduce greenhouse gas emissions while ensuring reliable fuel supplies.

While supporting the EU’s environmental objectives, the four countries argued that the regulation requires further clarification and adjustment to avoid unintended consequences for global energy markets.

“We strongly encourage a pragmatic approach,” the ministers wrote, urging Brussels to work with exporters and industry stakeholders to develop a framework that achieves methane reduction goals without disrupting energy flows.