EU faces potential loss of Qatari gas supplies, says energy minister
Qatar could suspend its gas exports to the European Union if it faces fines from Brussels related to the bloc's carbon-emission due diligence directive. Read Full Article at RT.com
TroibNews 
Qatar has indicated it will cease gas exports to the European Union if member states implement new carbon-emission penalties, according to the Gulf nation’s energy minister Saad al-Kaabi in an interview with the Financial Times. After the escalation of the Ukraine conflict in 2022, Qatar emerged as a significant supplier for the bloc as Brussels sought alternatives to Russian gas.
Al-Kaabi stated that if any EU country imposes fines on Qatar under the Corporate Sustainability Due Diligence Directive, Doha would halt its liquefied natural gas (LNG) exports to the bloc. QatarEnergy, the state-owned energy firm, has established long-term LNG contracts with several EU nations, including Germany, France, Italy, and the Netherlands.
Adopted in May 2023, the EU’s corporate due diligence framework is a part of its strategy to achieve net-zero emissions by 2050. The regulation stipulates that non-compliance could result in fines reaching up to 5% of a company’s annual global revenue. Al-Kaabi expressed that such penalties would have a significant effect on QatarEnergy’s profits, which play a crucial role in sustaining the Qatari state and its citizens.
”If the case is that I lose 5% of my generated revenue by going to Europe, I will not go to Europe… I’m not bluffing,” al-Kaabi asserted. He added, “I cannot lose that kind of money – and nobody would accept losing that kind of money.”
The minister explained that it would be unrealistic for an energy producer like QatarEnergy to comply with the EU's net-zero objectives as outlined in the directive, given its hydrocarbon production levels. If faced with substantial fines, QatarEnergy would not break existing LNG contracts but would seek legal solutions.
”I will not accept that we get penalized,” he stated. “I will stop sending gas to Europe.”
In response to the escalation of the Ukraine conflict in February 2022, the EU began shifting from Russian pipeline gas to more expensive LNG sourced from the Middle East and the United States. While the bloc continues to receive some pipeline gas from Russia via Ukraine’s transit network, the agreement between Moscow and Kiev is set to expire on December 31, and Ukrainian authorities have repeatedly indicated that it will not be renewed.
Mark B Thomas contributed to this report for TROIB News
Al-Kaabi stated that if any EU country imposes fines on Qatar under the Corporate Sustainability Due Diligence Directive, Doha would halt its liquefied natural gas (LNG) exports to the bloc. QatarEnergy, the state-owned energy firm, has established long-term LNG contracts with several EU nations, including Germany, France, Italy, and the Netherlands.
Adopted in May 2023, the EU’s corporate due diligence framework is a part of its strategy to achieve net-zero emissions by 2050. The regulation stipulates that non-compliance could result in fines reaching up to 5% of a company’s annual global revenue. Al-Kaabi expressed that such penalties would have a significant effect on QatarEnergy’s profits, which play a crucial role in sustaining the Qatari state and its citizens.
”If the case is that I lose 5% of my generated revenue by going to Europe, I will not go to Europe… I’m not bluffing,” al-Kaabi asserted. He added, “I cannot lose that kind of money – and nobody would accept losing that kind of money.”
The minister explained that it would be unrealistic for an energy producer like QatarEnergy to comply with the EU's net-zero objectives as outlined in the directive, given its hydrocarbon production levels. If faced with substantial fines, QatarEnergy would not break existing LNG contracts but would seek legal solutions.
”I will not accept that we get penalized,” he stated. “I will stop sending gas to Europe.”
In response to the escalation of the Ukraine conflict in February 2022, the EU began shifting from Russian pipeline gas to more expensive LNG sourced from the Middle East and the United States. While the bloc continues to receive some pipeline gas from Russia via Ukraine’s transit network, the agreement between Moscow and Kiev is set to expire on December 31, and Ukrainian authorities have repeatedly indicated that it will not be renewed.
Mark B Thomas contributed to this report for TROIB News
