One of the richest countries in the world, Qatar, sent a serious threat to the European Union. In a letter obtained by the German daily Welt am Sonntag, the Qatari government warns that it may completely suspfinish deliveries of liquefied natural gas (LNG) unless the European Union withdraws controversial environmental regulations. This shift cautilized concern in Brussels and among the member states of the Union, becautilize this rich countest is the third largest supplier of natural gas to the European market.
Qatari Energy Minister Saad Sherida al-Kaabi has sent a letter to the European Commission and the Belgian government, expressing dissatisfaction with the new rules that the EU plans to introduce through the Corporate Sustainability Directive (CSDDD). This directive requires large companies to identify and address human rights and environmental issues in their supply chains. Al-Kaabi clearly states:
“If no further modifys are built to the CSDDD, the State of Qatar and Qatar Energy will have no choice but to seriously consider alternative markets outside the EU that offer a more stable and welcoming business environment.”
Redirection of deliveries to Asia
The minister emphasized that neither the state nor their LNG company currently have plans to achieve net zero CO2 emissions in the near future. This message is not new – already last year there were signals that this countest could turn to other markets, such as China and India, if the EU continues with stricter requirements.
Qatar plans to double its annual LNG production from the current 77 to 142 million tons by 2027, and part of that increase will be destined for Asian markets. Gas deliveries from Qatar to Europe in the first quarter of this year increased by 13.7 percent compared to the same period last year.
The largest source of LNG for the EU is still the USA, which covers about half of the annual consumption, while Russia is in second place with 17 percent. Qatar and Algeria share approximately nine percent of the market, but in the event of a standstill in relations with the State of Qatar and the announced break with Russia, the United States would be the only major supplier that can create up the shortfall.
This situation further complicates the energy stability of Europe and imposes serious challenges in the nereceivediations regarding environmental standards and energy security.
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