Germany joins opponents of EU methane law, warns it could up-end jet fuel supply

By Kate Abnett and Friederike Heine

BRUSSELS, June 26 (Reuters) - Europe's biggest gas market, Germany, joined mounting pushback against the EU's planned methane emissions rules for oil and gas imports on Friday, ‌warning that the policy could disrupt jet fuel supplies already under pressure from the Iran war's energy shock.

From next year, the European Union will require monitoring and verification of methane emissions for fuel deliveries to the bloc. The rules aim to curb leaks of the potent greenhouse gas but have drawn strong opposition from industry and suppliers including the U.S., which this week has warned that the law would hamper gas deliveries to Europe.

"As it stands, the methane regulation would prevent not only gas imports into Germany - LNG - but also petroleum products from being imported from 2027 onwards," German Economy Minister Katherina Reiche said ahead of an EU meeting of ministers on Friday.

The ministers will discuss a call by 12 other EU governments, including Italy, the Czech Republic and the Netherlands, to delay the rules by three years.

"We need at least a postponement or a suspension of the methane regulation so that the Federal Republic of Germany can reliably secure its supply of gas imports, as well as petroleum products such as kerosene," Reiche said.

Some energy analysts and environmental groups have disputed the claims that the EU law would limit fuel imports, and said ample supplies are available that can comply.

In the face of opposition to the planned rules from some member states, the European Commission has drafted plans to waive penalties for companies that breach the rules.

EU energy commissioner Dan Jorgensen said on Friday that Brussels was willing to make it easier to implement the rules, but the law - a key pillar of the Commission's climate agenda - was already flexible enough and the EU would not rewrite it.

Methane is the second-biggest contributor to global warming behind carbon dioxide.

Jet fuel prices have surged as ‌a result of the Iran war's closure of the Strait of Hormuz, a key shipping route for global oil supplies, prompting airlines to cut uneconomic flight routes.

Imports from the Middle East typically cover about 20% of Europe's jet fuel demand.

Despite warnings from airlines of potential kerosene shortages, the EU ​has so far weathered the Iran war-induced disruption, with local refineries ramping up their kerosene output, and U.S. and Nigerian supplies increasing to help fill the gap.

(Reporting by Kate Abnett; Editing by Susan Fenton)