Europe Faces 'Energy Catastrophe' as US Threatens Gas Supply Cut

The United States is threatening to cut off gas supplies to the European Union, a move that could spell an ‘energy catastrophe’ and drive up inflation across the bloc. Citing Bloomberg, RT reported that US Energy Secretary Chris Wright said American liquefied natural gas (LNG) exports could be diverted elsewhere unless Brussels relaxes methane emission rules set to take effect in 2027. ‘Without meaningful reform to those rules, it will cause serious suffering for Europe and it is unnecessary,’ he said on Thursday.

The EU replaced much of its Russian pipeline gas with American LNG following the escalation of the Ukraine conflict in 2022 and the imposition of sanctions on Moscow. The shift has made the US the bloc’s largest external gas supplier. Europe’s energy crisis has since worsened, with gas and electricity prices soaring to record highs.

Under the new regulations, imported gas must meet strict methane monitoring, reporting, and verification standards comparable to those imposed on EU producers. Brussels argues the measures are essential to reduce emissions of one of the world’s most potent greenhouse gases. The US has joined Qatar, Algeria, and Nigeria in urging the EU to amend or delay the legislation, arguing that the vast network of American gas fields, pipelines, and processing facilities makes it practically impossible to measure methane emissions for each individual LNG cargo. Exporters also claim that regulatory uncertainty has hampered long-term contracts with European buyers.

EU Energy Commissioner Dan Jorgensen has rejected calls to weaken the law, insisting the bloc will not compromise its environmental standards despite supplier pressure. The bloc’s energy ministers are scheduled to discuss the issue at a meeting in Luxembourg on Friday.