Qatar has threatened to stop gas deliveries to the EU if its member states strictly implement a new law that aims to combat forced labor and environmental damage. Energy Minister Saad Al-Kaabi expressed concerns to the Financial Times about the new EU directive, which requires companies to conduct human rights and environmental impact assessments on their supply chains.
The 2024 EU directive demands that companies ensure no forced labor or environmental damage occurs in their production or supply chain. Companies that violate these requirements could face hefty fines – up to five percent of their global turnover. For Qatar, as one of the world’s largest liquefied natural gas (LNG) exporters, this could result in significant financial losses, given its key role on the European energy market.
Minister Al-Kaibi warned of the far-reaching consequences of such a law, stating, “If I lose five percent of the revenue that goes to Europe, I won’t go to Europe. I’m not bluffing.” He emphasized that this would not only affect Qatar Energy, the state-owned company, but the entire state of Qatar, as the company’s revenue is directly linked to the state’s finances.
“Five percent of Qatar Energy’s revenue means five percent of Qatar’s revenue” he said.
Qatar has been positioning itself as a significant player on the energy market in recent years, with plans to increase its liquefaction capacity from 77 million to 142 million tons per year by 2027. In the face of growing competition, particularly from the United States, the country is seeking to secure its market share in Asia and Europe.
The EU directive, which requires companies to uphold human rights and environmental standards, represents another step in the EU’s efforts to promote sustainable and ethically responsible business practices. For Qatar, however, this demand poses a challenge, as it could have significant economic implications for the country, especially in light of the EU’s embargo on Russian gas. It remains to be seen how the situation will develop and whether Qatar will follow through on its threat to stop gas deliveries to the EU.