LNG trade faces a new regulatory challenge as methane rules tighten

The International Gas Union’s latest report highlights the growing importance of emissions verification, cargo traceability and cross-border regulatory alignment, with ...

Twitter Email Linkedin The International Gas Union’s latest report highlights the growing importance of emissions verification, cargo traceability and cross-border regulatory alignment, with implications for LNG exporters, importers and the maritime industry.

A s highlighted in the Global State of the Methane Regulation Report from the International Gas Union (IGU), methane regulation is emerging as an increasingly important factor in global natural gas trade, placing new emphasis on how emissions data are measured, verified and linked to traded cargoes.

For the maritime industry, where LNG moves through an interconnected network of liquefaction terminals, carriers, floating storage and regasification units (FSRUs) and import terminals, the challenge extends beyond emissions reduction to the documentation and traceability underpinning international energy shipments.

The report examines how differing national and regional rules are reshaping the natural gas industry.

One of the key findings of the analysis, finds that jurisdictions accounting for approximately 67% of global natural gas production have adopted or proposed operational rules addressing methane emissions.

It also highlights a 10% decline in global average upstream methane intensity since 2019, reflecting progress in industry abatement programmes and measurement, reporting and verification practices.

However, as regulation expands, the lack of consistent requirements across jurisdictions risks creating a more complex compliance environment for internationally traded gas.

Among the regulatory approaches examined, the European Union’s Methane Regulation (EU) 2024/1787 stands out for its reach beyond the bloc’s borders.