Qatar threatens to cut Europe's gas over new climate law - Reuters

A letter from Qatar to the Belgian government, seen by Reuters, shows that Qatar threatened to halt gas deliveries to the European Union in response to the law on due diligence regarding forced labor and environmental harm.

Qatar is currently the world's third-largest exporter of liquefied natural gas (LNG) after the US and Australia. Since Russia's invasion of Ukraine in 2022, Qatar has supplied 12% to 14% of Europe's LNG.

In a letter to Belgium's government dated May 21, Qatari Energy Minister Saad al-Kaabi stated that the country is responding to the EU's Corporate Sustainability Due Diligence Directive (CSDDD). This directive requires large companies operating in the EU to identify and address human rights and environmental issues in their supply chains.

"Put simply, if further changes are not made to CSDDD, the State of Qatar and QatarEnergy will have no choice but to seriously consider alternative markets outside of the EU for our LNG and other products, which offer a more stable and welcoming business environment," said the letter.

The European Commission also received a letter from Qatar

The European Commission also received a letter from Qatar dated May 13, a Commission spokesperson told Reuters. The spokesperson noted that EU lawmakers and member states are currently negotiating changes to the CSDDD.

"It is now for them to negotiate and adopt the substantive simplification changes proposed by the Commission," the spokesperson said.

Brussels proposed changes to the CSDDD earlier this year to ease its requirements. These include postponing its implementation by one year, until mid-2028, and limiting the audits companies must conduct within their supply chains.

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

Qatar stated that the EU's proposed changes are insufficient. In his letter, Energy Minister Saad al-Kaabi highlighted Qatar's particular concern with the CSDDD's requirement for companies to develop climate transition plans aimed at preventing global warming above 1.5 degrees Celsius.

"Neither the State of Qatar nor QatarEnergy has any plans to achieve net zero in the near future," the letter said.

In an appendix to the letter, also seen by Reuters, Qatar proposed removing the section of the CSDDD that requires climate neutrality transition plans.

This is not Qatar's first threat to the EU. In December last year, Qatar warned Europe it might halt LNG supplies if QatarEnergy faced fines under the EU's comprehensive corporate sustainability due diligence directive.

It is worth noting that in 2023, Qatar agreed to supply gas to Shell for the Netherlands for nearly 30 years, replacing Russian deliveries.