Jul 28, 2025

Qatar warned it might reduce LNG exports to the EU in response to a sustainability law.

Qatar has warned it may reduce gas supplies to the European Union in reaction to the bloc's due diligence law concerning forced labor and environmental harm, as indicated in a letter from Qatar to the Belgian government obtained by Reuters.

As the world's third-largest exporter of liquefied natural gas (LNG), following the U.S. and Australia, Qatar has supplied 12% to 14% of Europe's LNG since Russia's invasion of Ukraine in 2022.

In a letter 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), which mandates that large companies in the EU address human rights and environmental issues in their supply chains.

Kaabi wrote, "If further changes are not made to CSDDD, Qatar and QatarEnergy will have no option but to seriously consider alternative markets outside the EU for our LNG and other products, which provide a more stable and hospitable business environment."

A representative from Belgium's EU office declined to comment on the letter, initially reported by the German newspaper Welt am Sonntag.

The European Commission also received a letter from Qatar on May 13, according to a spokesperson, who noted that EU lawmakers are currently negotiating amendments to the CSDDD.

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

Earlier this year, Brussels suggested modifying the CSDDD to lessen its requirements, including postponing its implementation to mid-2028 and reducing the extent of supply chain checks for companies.

Non-compliant companies could incur fines up to 5% of their global revenue.

Qatar has expressed that the EU's proposed changes do not go far enough.

In the letter, Kaabi emphasized Qatar's worry about the CSDDD's stipulation for companies to develop a climate change transition plan aimed at limiting global warming to below 1.5 degrees Celsius, in line with the Paris Agreement.

"The State of Qatar and QatarEnergy have no plans to achieve net zero in the near future," the letter stated, claiming the CSDDD undermines nations' rights to establish their own contributions to Paris Agreement objectives.

In an annex to the letter, which was also seen by Reuters, Qatar suggested eliminating the CSDDD section that mandates climate transition plans.

Kaabi, who is also the CEO of QatarEnergy, noted that QatarEnergy has long-term supply contracts with major European firms, including Shell, TotalEnergies, and ENI.