The EU’s Methane Regulation Must Include Supply Chain Emissions and the Petrochemical Sector

The briefing highlights a growing trade in natural gas liquids (NGLs), specifically ethane and propane, from US fracking basins to European petrochemical plants. It contends that because several European countries have banned fracking, the reliance on US imports creates a loophole where emissions are outsourced. The author urges the European Commission to ensure the EU Methane Regulation covers the entire supply chain and includes petrochemical feedstocks to avoid undermining emissions reductions and health policies.

• The European Union's climate and plastic reduction goals are being jeopardized by the use of fossil feedstocks from the United States for plastics production in Europe.
• US steam cracking capacity for ethane increased from 26 million tons per year in 2005 to 45 million tons per year in 2021, with plans as of October 2021 to add another 9.1 million tons per year.
• Seven European countries have implemented bans or moratoria on fracking: France, Bulgaria, The Netherlands, Germany, Ireland, the United Kingdom, and Spain.
• Most US natural gas liquids (NGLs) exported to Europe originate from the Appalachian (Pennsylvania, Ohio, West Virginia), Eagle Ford (Texas), and Permian (Texas and New Mexico) basins.
• In Europe, the primary known users of US ethane are Borealis and INEOS, while the primary known users of US propane are Dow Chemical and INEOS.
• The European Parliament passed a resolution in October 2021 requesting that the EU Methane Regulation include fossil gas and oil used for non-energy purposes, such as petrochemicals, and cover the whole supply chain.
• The original EU strategy for the energy sector identified measurement, reporting, and verification (MRV), leak detection and repair (LDAR), and a ban on routine venting and flaring as required pillars, while extension to the petrochemical sector and full supply chain coverage were listed as optional.

APA

Center for International Environmental Law (2021). The EU’s Methane Regulation Must Include Supply Chain Emissions and the Petrochemical Sector. https://www.ciel.org/wp-content/uploads/2021/12/21.12.2.6-pager_EU-Methane-Regulation-Backgrounder.pdf

Chicago

Center for International Environmental Law. The EU’s Methane Regulation Must Include Supply Chain Emissions and the Petrochemical Sector. 2021. https://www.ciel.org/wp-content/uploads/2021/12/21.12.2.6-pager_EU-Methane-Regulation-Backgrounder.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=The EU’s Methane Regulation Must Include Supply Chain Emissions and the Petrochemical Sector |date=25 November 2021 |url=https://www.ciel.org/wp-content/uploads/2021/12/21.12.2.6-pager_EU-Methane-Regulation-Backgrounder.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2021eus, author = {{Center for International Environmental Law}}, title = {{The EU’s Methane Regulation Must Include Supply Chain Emissions and the Petrochemical Sector}}, institution = {Center for International Environmental Law}, year = {2021}, month = nov, url = {https://www.ciel.org/wp-content/uploads/2021/12/21.12.2.6-pager_EU-Methane-Regulation-Backgrounder.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }