Qatar’s Energy Minister, Saad al-Kaabi, informed the Financial Times that Qatar would cease liquid natural gas (LNG) supplies to the European Union if the EU rigorously enforces a new European law. This law, known as the Corporate Sustainability Due Diligence Directive, was adopted by EU member states earlier this year and is also referred to as the “anti-avoidance law.” It mandates companies to address issues such as exploitation, modern slavery, environmental pollution, and human rights abuses in their supply chain.
Failure to comply could result in fines up to 5% of the annual global turnover and potential civil litigation. The regulation will apply to large companies with at least 5,000 employees and an annual turnover of 1.5 billion euros from 2028, and to European companies with a minimum annual turnover of 450 million euros and 1,000 employees from 2029.
Kaabi stated that if any EU country imposes a fine on QatarEnergy, the state oil company he leads, Qatar would stop LNG deliveries to all EU nations. QatarEnergy is among the world’s largest LNG exporters, supplying countries including the Netherlands, Germany, and France.
Kaabi expressed that losing 5% of QatarEnergy’s revenue to Europe is unacceptable, as it represents significant state revenue. Kaabi considers the current form of the European law unmanageable for companies like QatarEnergy, which would need to scrutinize 100,000 suppliers.
He mentioned the possibility of reaching a compromise and would be open to a fine of up to 5% of European-generated income but not from total revenue.
Source: NOS