EU Methane Regulation - What Does it Mean for US LNG?

Research evidence excerpt

EU Methane Regulation - What Does it Mean for US LNG?

a grace period 1 (212) 336-7254 | emma.schwartz@jefferies.com

for the market to adjust and exporters to demonstrate compliance with a possible 3yr delay Luke Sussams ^ | Sust. & Transition Strategist

proposed last month. Mr Handler suggested that potentially the EU could simplify the regulation 44 (0)20 7548 4404 | lsussams@jefferies.com

to assess compliance on a country-wide basis instead of individual imported cargoes. Mr Handler Aniket Shah, PhD * | Head of Sust. &

also highlights post-'26, the potential for a renegotiation of the EUMR following EU elections. Transition Strategy

+1 (212) 323-3976 | ashah14@jefferies.com

Tokenization: A Potential Solution? Proving US LNG compliance with EUMR's MRV requirements is

Charles Boakye, CFA * | Sust. & Transitionhighly complex given feedgas is often sourced from multiple upstream producers. Mr Handler sees

Strategist

potential for upstream & midstream operators to track and capture emissions via drones, sensors, +1 (212) 336-6649 | cboakye@jefferies.com

satellites, and AI-algorithms. He notes select companies have already applied these techniques for

Lloyd Byrne * | Equity Analyst

Responsibly Sourced Gas. The environmental attributes of gas can be represented through a digital +1 (212) 323-7528 | lloyd.byrne@jefferies.com

twin of the gas molecule, and these digital twins can then be tokenized to allow for automated

Mark Wilson, CEng ^ | Equity Analyst

evaluation of a gas's carbon credentials. Over time, these tokens could evolve into independently 44 (0) 20 7029 8691 | mark.wilson@jefferies.com

tradable assets with fossil fuel exporters to the EU purchasing offset tokens on exchanges.

John Edelman * | Equity Analyst

Our View of the Market Impact.