Page 10 - EurOil Week 19 2022

EurOil POLICY EurOil

EU talks on Russian oil embargo stall

EUROPE THE EU’s plan to impose an embargo on Rus- on May 6, and another meeting held on May 8
sian oil appears to be stalling, as a result of oppo- did not lead to a breakthrough either, according
Hungary and other sition from Hungary. to Politico. Talks are expected to continue over
Central European European politicians have met several times the next few days.
countries are resisting in recent days to discuss the EU’s sixth package Besides Hungary, Slovakia and the Czech
the move. of sanctions against Russia, first proposed by Republic are also in opposition to such a fast
European Commission President Ursula von phase-out of Russian oil. All three countries get
der Leyen on May 4. But they are yet to sign off their Russian oil via the Soviet-era Druzhba oil
on the measures, owing to resistance from some pipeline, and there are limited routes for alterna-
member states more dependent on Russian tive supply. They have won concessions from the
energy imports. commission on May 6 giving them more time
The commission wants to end Russian to comply with the ban. According to Reuters,
crude oil imports within half a year, and ban the three countries would have until 2024 to end
Russian petroleum product purchases by the Russian imports, giving them time to upgrade
end of 2022. Europe imports about 4mn bar- their refineries to process types of oil other than
rels per day of oil and refined oil products from Russia’s Urals blend. But still, no agreement has
Russia. been announced.
Hungarian Prime Minister Viktor Orban on For the oil ban and other measures outlined
May 6 likened a ban on Russian oil imports to a in the latest sanctions package to come into
“nuclear bomb” for the country’s economy, given force, they must be supported unanimously by
its heavy reliance on these supplies. While he did all 27 member states. Frustrated with the lack of
not directly threaten to veto the package, he said progress, von der Leyen lamented on May 9 that
that Budapest would not approve the plan “until unanimity voting on key policy areas no longer
the Hungarian issue is resolved.” made sense if the EU wanted to respond fast to
EU ambassadors failed to reach a consensus Russia’s actions in Ukraine. ™
ENERGY TRANSITION

Gas firms call for global methane standard

GLOBAL A group comprising over 50 natural gas compa- years some member states have scrutinised LNG
nies in the US has called on the White House and import contracts with US suppliers because of
The group of US gas the European Commission to establish a unified concerns about methane emissions.
companies want the global standard for quantifying methane emis- ONE Future was formed in 2014, and its
EU and the US to work sions across the industry’s value chain, from the members committed to achieving less than 1%
together to establish wellhead to the burner tip. methane emissions intensity by 2025.
a global standard for Members of the group, One Nation’s Energy “No other nation of collection of companies
quantifying methane Future (ONE Future), account for 19% of US can credibly claim emissions performance that
emissions. gas production, 56% of the country’s pipeline approaches that of our member companies,”
mileage and 40% of natural gas delivered. They Kibler said in the letter. “We have proven that our
have urged the US and the EU to come up with performance-based approach to reducing meth-
a universal standard for measure, reconcilia- ane emissions works by deploying it at scale and
tion and verification of emissions, according with demonstrable results.”
to a copy of an April letter addressed to gov- Recent years have seen the rise of certi-
ernment officials that was seen by Natural Gas fied low-emissions natural gas in the US, and
Intelligence. supporters say this will be key for US LNG to
“ONE Future welcomes the recent US-Euro- demonstrate its value as a means of curbing
pean Commission natural gas agreement, and emissions overseas, particularly in markets
strongly supports the emphasis on low emis- where natural gas can displace coal.
sions,” the group’s executive director Jim Kibler “American natural gas is already the safest,
said in a statement. “To this end, ONE Future cleanest, most efficient, and most advanced
would like to work with your preferred points of natural gas value chain in the world,” Kibler
contact to develop a new global measurement, said. “Our member companies, who are with-
reconciliation, and verification standard to out doubt at the leading edge of transforming
ensure the delivery of low-emission natural gas.” our value chain, believe that American natural
The US pledged to supply an additional 15 gas can and should do more to stabilise world
bcm per year of LNG to the EU this year, to help energy markets, protect the climate, and pro-
the bloc wean itself Russian imports in the wake vide affordable, safe, and secure energy in the
of Moscow’s invasion of Ukraine. But in past world.”™

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