Qatar, one of the world’s leading exporters of liquefied natural gas (LNG), has warned it may halt gas shipments to the European Union if the bloc enforces its new corporate sustainability directive, which imposes heavy fines on non-compliant companies. This threat was made by Qatar’s Energy Minister, Saad al-Kaabi, in an interview with the Financial Times published this weekend.
Earlier this year, the EU adopted the Corporate Sustainability Due Diligence Directive, which requires large companies to address the negative impacts of their activities on human rights and the environment. The directive is part of the EU’s broader strategy to align businesses with its goal of achieving net-zero emissions by 2050.
Under the new rules, companies could face fines of up to 5% of their global annual revenues if they fail to comply with sustainability requirements, including environmental standards.
Al-Kaabi, who also serves as president and CEO of QatarEnergy, stated that if the EU imposes these rules strictly, Qatar could reconsider its business dealings with the bloc. “If I lose 5% of my generated revenue by doing business with Europe, I will not go to Europe. I’m not bluffing,” he said in the interview.
He emphasized that the 5% revenue loss would directly affect QatarEnergy and, by extension, the state of Qatar. “This is the people’s money, and I cannot lose that kind of money. No one would accept losing that kind of money,” al-Kaabi added.
The EU’s directive has faced criticism from major corporations, but the bloc’s dependence on Qatar’s LNG is clear. QatarEnergy has secured long-term deals with European companies such as Shell, Eni, and TotalEnergies, committing to supply LNG to EU nations from its major expansion projects in Qatar, which are set to start operations in 2026 and 2027.
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