Oct 17, 2025
Qatar's energy minister cautions that EU legislation might hinder its ability to provide LNG to Europe.
Qatar's energy minister, Saad al-Kaabi, informed Reuters that without further modifications to its corporate sustainability regulations, Qatar will struggle to conduct business in the EU, including supplying LNG to address Europe's energy needs.
As one of the leading liquefied natural gas exporters, Qatar believes the EU's corporate sustainability due diligence directive (CSDDD) established in 2024 poses a serious risk to state-owned QatarEnergy.
This directive mandates that larger companies in the EU identify and address human rights and environmental issues in their supply chains, or face financial penalties. Although the European Parliament's legal committee has supported efforts to soften the law in response to corporate pushback, Kaabi stated that the revisions do not resolve major concerns.
Kaabi, also the CEO of QatarEnergy, expressed worries about potential fines of up to 5% of global revenue for companies lacking climate change transition plans aligned with the Paris Agreement goal of limiting global warming to 1.5°C. Since Russia's invasion of Ukraine in 2022, Qatar has supplied 12% to 14% of Europe's LNG and has long-term contracts with companies like Shell, TotalEnergies, and ENI. He mentioned that Qatar has been trying to engage constructively with key European stakeholders about the CSDDD for nearly a year but has not received a response from the European Commission. Kaabi emphasized that Europe must decide whether to modify the CSDDD to attract investment or risk weakening its competitiveness and economy.
He concluded that QatarEnergy cannot justify continued business in the EU, whether in LNG or other products, due to the risks associated with the proposed regulations, which could ultimately disadvantage European consumers.
As one of the leading liquefied natural gas exporters, Qatar believes the EU's corporate sustainability due diligence directive (CSDDD) established in 2024 poses a serious risk to state-owned QatarEnergy.
This directive mandates that larger companies in the EU identify and address human rights and environmental issues in their supply chains, or face financial penalties. Although the European Parliament's legal committee has supported efforts to soften the law in response to corporate pushback, Kaabi stated that the revisions do not resolve major concerns.
Kaabi, also the CEO of QatarEnergy, expressed worries about potential fines of up to 5% of global revenue for companies lacking climate change transition plans aligned with the Paris Agreement goal of limiting global warming to 1.5°C. Since Russia's invasion of Ukraine in 2022, Qatar has supplied 12% to 14% of Europe's LNG and has long-term contracts with companies like Shell, TotalEnergies, and ENI. He mentioned that Qatar has been trying to engage constructively with key European stakeholders about the CSDDD for nearly a year but has not received a response from the European Commission. Kaabi emphasized that Europe must decide whether to modify the CSDDD to attract investment or risk weakening its competitiveness and economy.
He concluded that QatarEnergy cannot justify continued business in the EU, whether in LNG or other products, due to the risks associated with the proposed regulations, which could ultimately disadvantage European consumers.