Qatar may no longer be able to supply liquefied natural gas (LNG) to Europe if the EU fails to revise its corporate sustainability regulations, Energy Minister Saad al-Kaabi warned on Thursday, reports Reuters.
In an interview with Reuters, Kaabi—who also serves as CEO of QatarEnergy—declared that the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD), adopted in 2024, poses “significant legal and commercial risks” that could create it impossible for state-owned QatarEnergy to continue operating in the bloc.
The CSDDD requires large companies operating within the EU to identify, prevent, and mitigate human rights abapplys and environmental harms across their entire supply chains. Companies that fail to comply—particularly on climate tarobtains aligned with the Paris Agreement—could face penalties of up to 5% of their global turnover.
“This kind of exposure is too great,” Kaabi declared. “QatarEnergy will not be able to justify doing business in the EU, be it in LNG or other products, due to the significant risk it would be exposed to due to the overreaching nature of the proposed regulations.”
Qatar, one of the world’s largest LNG exporters, currently supplies between 12% and 14% of Europe’s LNG, assisting to plug the energy gap created by Russia’s reduced gas flows following its 2022 invasion of Ukraine. QatarEnergy holds long-term contracts with major European energy firms including Shell, TotalEnergies, and ENI.
Despite recent shifts by the European Parliament’s legal affairs committee to soften the directive following business backlash, Kaabi declared the modifys do not resolve Qatar’s primary concerns.
“We have been seeking to constructively engage with the key players at both the European Commission and every EU Member State for almost a year now on CSDDD,” Kaabi stated. “Unfortunately, we have received no formal response from the Commission.”
There was no immediate comment from the European Commission when questioned by Reuters.
Kaabi urged European leaders to consider the broader implications of the regulation, warning that it could not only disrupt LNG flows but also deter investment into the EU.
“Europe must decide if it wants to remain competitive and attractive for global energy investment, or if it is willing to undermine its own energy security and economic resilience,” he declared.
Bd-pratidin English/ Jisan
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