The European Commission said fines of up to 20% of annual turnover for methane-rule breaches should be suspended in 2027-2030 as Middle East tensions and Strait of Hormuz disruptions raise energy-security concerns.
The European Union is moving to suspend penalties for oil and gas companies that breach its methane emissions standards after pressure from the United States, major producer countries and some member states, with Brussels citing risks to energy supply. The European Commission said on Monday that EU countries should not apply penalties in 2027-2030, even though the broader obligations under the EU Methane Regulation would remain in force. The fines, which can reach up to 20% of annual turnover for failing to meet European-equivalent emissions monitoring rules, had been due to start next year. Brussels said the pause would give importers more time to comply while helping safeguard supply as global energy markets tighten amid the ongoing blockade of the Strait of Hormuz and conflict in the Middle East.