Qatar threatens Europe with termination of liquefied natural gas supplies - FT
Qatar threatens Europe with termination of liquefied natural gas supplies (photo: Getty Images)
Qatar has threatened to cut off liquefied natural gas (LNG) supplies to Europe. This will happen if QatarEnergy faces a fine due to the EU Directive on corporate sustainability due diligence, says Qatar energy minister Saad al-Kaabi.
“If the case is that I lose 5 percent of my generated revenue by going to Europe, I will not go to Europe... I’m not bluffing,” Kaabi said. “Five 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.”
Kaabi believes that the EU should thoroughly review the corporate sustainability due diligence directive.
He also said that his Gulf country has no concerns about US President-elect Donald Trump's promise to lift restrictions on liquefied natural gas exports.
What is this EU directive
Approved this year, the Corporate Sustainability Due Diligence Directive requires large companies operating in the European Union to check whether their supply chains use forced labor and cause environmental damage and take action if they do. Penalties include fines of up to 5% of global turnover.
Qatar, one of the world's largest LNG exporters, is seeking to play a more significant role in Asia and Europe as competition from the main supplier, the United States, intensifies. It plans to expand its liquefaction capacity to 142 million tons per year by 2027 from 77 million tons.
Trump's plans for gas exports
US President-elect Donald Trump is preparing a large-scale plan to increase gas exports and oil production. Oil and gas production, along with immigration, will be one of the early items on the US president-elect's agenda.
In mid-December, the US Department of Energy conducted a study on the feasibility of liquefied natural gas exports. This report could undermine Trump's plans to immediately issue permits for billions of dollars worth of LNG export facilities.
