Mitigating Methane Emissions: Quantifying the Impact of EU Methane Regulation on Liquefied Natural Gas and its Pricing

Methane is a potent greenhouse gas with a global warming potential 80 times greater than carbon dioxide over a 20-year period, making its reduction critical for achieving global climate goals. Despite over 150 countries signing the Global Methane Pledge to reduce methane emissions by 30% by 2030, levels have continued to rise, particularly from the energy sector. In response, the European Union (EU), the world’s largest importer of liquefied natural gas (LNG), implemented the EU Methane Regulation (EU-MER) in 2024 to reduce methane emissions from the energy sector, including imported LNG. However, the effectiveness of these newly enacted regulations, especially when compared to regions with less stringent policies, such as China, remains underexplored. In this context, this project represents a timely interdisciplinary approach that will: 1) conduct a comparative analysis of methane emissions at LNG terminals in Europe and China using field measurements, satellite surveys and advanced data analysis; 2) assess methane emissions from LNG carriers, focusing on factors such as ship age, size and engine type; and 3) evaluate the economic impact of the EU-MER on LNG pricing and market dynamics, while proposing feasible strategies to reduce methane emissions in the LNG sector. Through advanced training, provided by the host, I will deepen my expertise in methane quantification, environmental standards and economic analysis, while developing transferable skills in mentoring, leadership, networking, grant writing and impact development. These skills will be crucial for my growth as an independent and collaborative researcher. By integrating environmental science, engineering and economics, this project will inform policy adjustments, guide industry practices and reinforce the EU’s leadership in climate action, ultimately contributing to global efforts to mitigate climate change.