Repsol Warns Most Crude Supplies Will Fail EU Methane Rules
Repsol SA warns that 90% of its crude oil supplies will likely fail new EU methane requirements starting January 1.
Spanish energy company Repsol SA announced that approximately 90% of its crude oil supplies will likely fail to meet new European Union methane requirements beginning January 1. Deputy CEO Luis Cabra stated the company is continuing to sign contracts without compliance provisions to prevent refinery shutdowns, as many suppliers refuse to provide required monitoring, reporting, and verification data.
Repsol has reserved its legal rights to challenge regulators, arguing that the requirements are impossible to meet due to supplier reluctance and the specific heavy crude needs of its Spanish refineries. Cabra warned that without flexibility, he would be forced to shut down the refinery on January 1, 2027.
While the European Commission recommended that member states avoid financial penalties for three years to maintain supply security, Repsol remains concerned about potential legal challenges. In response to the regulatory pressure, French President Emmanuel Macron and more than a dozen EU member states have requested a one-year postponement of the rules.
