EU Methane Regulations Are Here: What Oil & Gas Companies Need to Know

On the 4th August 2024, the European Union (EU) adopted the world’s first comprehensive law to cut methane emissions across the oil and gas sector. 

Whether you operate inside Europe, or export oil, gas or coal to it, this regulation could change your reporting, operations, and market access in the next few years. 

Why

Regulation (EU) 2024/1787 seeks to promote global methane emissions reductions, enhance transparency, and support the EU's climate neutrality goals by 2050. 

What

The regulations address methane emissions from oil, gas, and coal activities, including exploration, production, transmission, distribution, storage, and post-mining activities. ​ The regulation also sets restrictions on venting and flaring, mandates leak detection and repair (LDAR) surveys, and introduces transparency tools for methane emissions data. ​ 

Where

The purpose of the regulation is to establish rules for the accurate measurement, monitoring, reporting, verification, and reduction of methane emissions in the energy sector within the EU. ​ 

Additionally, the regulation extends its scope to methane emissions associated with crude oil, natural gas, and coal imported into the EU, requiring importers to provide information on monitoring, reporting, and mitigation measures applied by producers outside the EU. ​ 

Who

• Companies involved in EU-based activities including: oil/gas exploration & production, transmission, distribution, underground storage, LNG facilities; active, closed, abandoned, or plugged coal/oil wells; and coal mines (underground and surface)  

• Importers of fossil fuels (oil, gas, coal) and their supply chain, including upstream oil and gas operators. 

  
  

BUT – while the regulations directly impact importers of oil, gas and coal, obligations for measuring, reporting, and verification (MRV) will be pushed down the supply chain to international upstream oil and gas producers so importers can ensure they meet their legal obligations. 

How

The EU Methane Regulation (2024/1787) applies to upstream, midstream, and downstream oil and gas activities and includes some of the following key requirements:

• Leak Detection and Repair (LDAR):  Operators must survey assets up to 4x a year and repair leaks typically within 5–15 working days. 

• Mandatory methane reporting:  Annual, source-level emissions reports verified by third parties, aligned with OGMP 2.0 Level 4/5 methodologies. 

• Routine venting and flaring banned:  Methane releases are only allowed for safety or if no viable alternative exists, and even then, must be minimised and justified. 

• Importer compliance:  Suppliers of fossil fuels to the EU will need to provide transparent, verifiable emissions data for shipments starting in 2027, and meet performance thresholds by 2030. 

The OGMP 2.0 Advantage 

The regulation is closely aligned with the OGMP 2.0 framework, but extends further. If your company is already signed up to OGMP 2.0 with a roadmap to achieving Level 4/5 compliance, then you are well-positioned to be able to comply with the EU Methane Regulations or requests from importers – but you need to be aware of the additional requirements of the regulations on top of OGMP Level 5 compliance.  

If your company is not yet part of OGMP 2.0, then understanding the requirements, joining OGMP, and developing a detailed plan to achieve compliance is an ideal way to align with EU requirements and ensure you are able to maintain access to the EU market in the future. 

When

• From May 2025 – Data gathering phase where importers must submit basic qualitative information, including what “Measurement, Reporting and Verification” (MRV) and mitigation activities are currently taking place by exporters and producers.  Oil and gas operators will be required to submit a leak detection and repair (LDAR) programme by 5th May 2025 for existing sites or within six months from the state date of operations at a new site. For importers, they will need to provide information regarding the production and transportation by this date. 

• 5th August 2025 – Annual reporting on source-level methane emissions, with reporting becoming more detailed over time depending on the type of fossil fuel produced. 

• Feb 2026 – EU will use this information to form a publicly-available methane transparency database 

• 5th February 2026 – Prohibition on routine flaring and venting will come into force. 

• 5th May 2026 – Annual reporting by operators of the methane emissions from all inactive wells and temporarily plugged wells. 

• Jan 2027 – Importers must demonstrate exporters/producers are implementing EU-equivalent MRV systems. They must also demonstrate by this date that any contracts “concluded or renewed on or after 4th August 2024” only cover oil or gas that is subject to monitoring, reporting and verification mechanisms that meet the standards set by the EU. 

• 5th Aug 2028 – Importers will need to report methane intensity of their shipments for any contracts concluded or renewed on or after 4th August 2024 

• Aug 2030 – Imports must meet methane performance standards and be below maximum methane intensity values. 

  
  

Details and guidance are yet to be finalised for some of the methodologies and the methane intensity thresholds, which are expected to be released over the next few years by the EU Commission. It is worth noting that the EU Regulation on the Reduction of Methane emissions in the Energy sector (MERR) is not included in the Omnibus Package. 

What can oil and gas companies do to prepare? 

1. Understand your current position – do you have a comprehensive inventory of all methane-emitting sources across your assets, including fugitive emissions, venting, flaring, and combustion slip?  

2. Review / implement Leak Detection And Repair (LDAR) protocols – do you have established LDAR protocols to meet the frequency and technology requirements under the regulation? Have you got procedures for timely repair and documentation in place? 

3. Audit your MRV systems – do you currently undertake any methane measurement activities? Do you understand what technologies are most appropriate for your assets? Have you developed internal systems for accurate quantification, record-keeping, and third-party verification? 

4. Phase out routine venting and flaring – have you assessed opportunities to eliminate routine flaring and venting through gas capture, reinjection, or use on-site? Do you have a flare and vent reduction plan aligned with regulatory timelines and exceptions? 

5. Start dialogue with EU importers – they’ll need verified emissions data from you starting 2027, so make sure you understand what it is you need to provide and by when to maintain access to the EU market. 

This is a regulatory shift with global reach. 

The EU is setting a methane benchmark that many other jurisdictions may follow. Companies that adapt early by aligning with OGMP 2.0 and building towards Level 5 compliance will be best placed to maintain access to European markets over the coming years.