Qatar threatens LNG halt over EU due diligence law

Qatar has threatened to cease liquefied natural gas (LNG) shipments to the European Union (EU) if the bloc enforces a corporate sustainability due diligence directive, according to a news report.

The directive, set to take effect in 2027, imposes penalties for companies failing to meet stringent standards on environmental protection and forced labour in supply chains. The penalties include fines of at least 5 percent of a company’s annual global revenue.

“If the case is that I lose 5 percent of my generated revenue by going to Europe, I will not go to Europe… I am not bluffing,” energy minister Saad Al-Kaabi told the Financial Times.

He said the 5 percent of generated revenue of QatarEnergy means “5 percent of generated revenue of the Qatar state”.

“This is the people’s money… so I cannot lose that kind of money — and nobody would accept losing that kind of money.”

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Criticising the legislation, Al-Kaabi said it is unworkable for companies such as QatarEnergy and impossible for the state-owned energy company to meet the EU’s net zero target due to the amount of hydrocarbons it produces.

He suggested a possible compromise if penalties apply only to European income rather than a company’s global revenue.

This month, Al-Kaabi said he believed that US president-elect Donald Trump’s proposal to remove the cap on LNG exports will not be a concern for the Gulf nation.