Repsol warns 90% of crude supplies breach EU methane rules

Repsol warned on Thursday that approximately 90% of its crude oil supplies will not meet new European Union methane rules scheduled to take effect in January. The Spanish energy company has confirmed compliance for only about 10% to 15% of its crude supplies so far.

Deputy Chief Executive Officer Luis Cabra said in an interview that Repsol continues to sign supply contracts without compliance clauses because suppliers refuse to provide the required data. Cabra noted that refusing non-compliant crude would force the company to shut down refineries on Jan. 1, 2027. Repsol operates five refineries in Spain configured for heavier crudes, including grades from the Americas such as Venezuela.

The EU regulation requires importers of crude oil, gas and coal to prove production met specific monitoring, reporting and verification standards. Although the European Commission recommended in July that member states waive financial penalties for three years, Repsol has notified authorities that it reserves its legal rights to challenge requirements it views as impossible to meet. French President Emmanuel Macron and more than a dozen EU member states have asked the Commission for a one-year delay.