EU Methane Regulation implications across the oil and gas supply chain

Prepare for reporting obligations, methane intensity requirements, and the collaborative expectations needed across the supply chain

As global methane regulations continue to evolve, the European Union Methane Regulation (EUMR) is emerging as a significant driver of change across international energy markets. The regulation introduces new expectations for emissions measurement, reporting, verification, and supply chain transparency, creating implications not only for EU-based operators but also for organizations worldwide that produce, export, trade, or import energy products into the Union.

SLR tracks EUMR developments as implementation details and formal recommendations are released. The recent updates on Compliance Solutions for complex supply chains brought the picture into sharper focus regarding how international players may participate in data exchange across the supply chain.

Our reference document, European Union Methane Regulation (EUMR) Stakeholders, examines the different stakeholders most affected by the EUMR and the practical challenges associated with compliance (and the pass-back indirect obligations). By understanding these interconnected responsibilities, organizations can better prepare for reporting obligations, methane intensity requirements, and the collaboration needed across the supply chain.

We group affected organizations into five key categories and summarize how they are impacted by the EUMR:

1. 3rd Country Producers: may be requested to provide emissions information that supports EU reporting and methane intensity requirements.
2. LNG Exporters: may be expected to facilitate data exchange across the supply chain and/or respond to data requests.
3. EU Importers: responsible for key reporting and disclosure obligations for products placed on the EU market.
4. EU Operators: subject to direct methane monitoring, reporting, and operational requirements.
5. Marketers, Traders, and Other Intermediaries: may play an increasingly important role in supporting data traceability and supply chain transparency.

Drawing on SLR's experience in methane management and regulatory compliance, the guide explores the implications of the EUMR across energy supply chains and highlights the technical expertise SLR can provide to support organizations affected by evolving methane requirements.