US and Qatar Warn EU of Gas Crunch Over Methane Rules

Key Facts

1US Energy Secretary Chris Wright and Qatari Energy Minister Saad al-Kaabi sent a joint letter to the EU warning that new methane regulations could cause a gas supply crunch and higher prices.

2Algeria and Nigeria also signed onto the letter criticizing EU methane regulations.

As Europe seeks to diversify energy sources after the Russian gas crisis, top LNG producers have issued an unprecedented warning to the EU. US Energy Secretary Chris Wright and Qatari Minister Saad al-Kaabi sent a joint letter to Brussels, joined by Algeria and Nigeria, stating that new methane regulations could cause a gas supply crunch and higher prices, according to a Financial Times report.

The letter comes two years after the EU adopted its methane regulation, now taking effect. It requires all energy suppliers to track and reduce methane emissions across the supply chain, which major exporters say is technically unfeasible. Analysts believe this could push some producers to redirect exports to less stringent markets, narrowing Europe's options as the continent continues to face gas price volatility.

With no signs of Brussels backtracking, markets are watching for signals from upcoming EU energy meetings. Market data shows continued volatility in Dutch TTF gas prices. ECB President Christine Lagarde's speech on June 22, 2026 will be closely watched for clues on the EU's energy policy stance.