Qatar threatens Europe with LNG supply cuts: Media explains why

Qatar has threatened to cut gas supplies to the European Union in response to the bloc’s due diligence law on forced labor and environmental damage. This is evidenced by Qatar’s letter to the Belgian government, which Reuters has seen, UNN reports.

Details

Qatar is the world’s third-largest exporter of liquefied natural gas (LNG) after the United States and Australia. It has supplied 12% to 14% of Europe’s LNG since Russia’s invasion of Ukraine in 2022.

In a letter to the Belgian government dated May 21, Qatari Energy Minister Saad al-Kaabi stated that the country was reacting to the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), which requires larger companies operating in the EU to identify and address human rights and environmental issues in their supply chains.

“Simply put, if no further changes are made to the CSDDD, the State of Qatar and QatarEnergy will have no choice but to seriously consider alternative markets outside the EU for our LNG and other products that offer a more stable and favorable business environment,” the letter states.

A spokesman for Belgium’s representation to the EU declined to comment on the letter, which was first reported by the German newspaper Welt am Sonntag.

The European Commission also received a letter from Qatar dated May 13, a Commission spokesman told Reuters, noting that EU lawmakers and EU countries are now negotiating changes to the CSDDDD.

“It is now up to them to agree and adopt the substantial changes regarding simplification proposed by the Commission,” the spokesman said.

Addendum

Brussels proposed changes to the CSDDD earlier this year to reduce its requirements, including by delaying its launch by a year, until mid-2028, and limiting the checks companies will have to conduct in their supply chains.

Companies that fail to comply could face fines of up to 5% of global turnover.

Qatar said the EU’s changes were not far enough.

In the letter, Kaabi noted that Qatar was particularly concerned about the CSDDD’s requirement for companies to have a climate change transition plan aligned with preventing global warming above 1.5 degrees Celsius – a goal of the Paris Agreement.

“Neither the State of Qatar nor QatarEnergy have any plans to achieve net-zero emissions in the near future,” the letter states, noting that the CSDDD undermines countries’ right to set their own national contributions to achieving the goals of the Paris Agreement.

In an annex to the letter, also seen by Reuters, Qatar proposed removing the section of the CSDDD that contains the requirement for climate transition plans.