Energy minister claims that EU risking losing gas supplies from Qatar
Date
12/23/2024 6:40:07 AM
(MENAFN) Qatar has warned that it will stop sending liquefied natural gas (LNG) to the European Union if member states implement penalties under the EU's Corporate Sustainability Due Diligence Directive, which targets carbon emissions. QatarEnergy, the state-owned energy company, has long-term contracts with several EU nations, including Germany, France, Italy, and the Netherlands.
The EU's due diligence rules, adopted in May 2023, are part of its strategy to achieve net-zero emissions by 2050. These rules impose fines of up to 5% of a company’s global revenue for non-compliance. Qatar's energy minister, Saad al-Kaabi, expressed concern that such penalties would severely impact QatarEnergy's revenue, which funds the state of Qatar. He stated that the company would stop supplying gas to Europe if forced to comply with these fines, emphasizing that it is impossible for an energy producer like QatarEnergy to meet the EU's net-zero target.
While QatarEnergy would honor its LNG contracts, the minister stressed that they would seek legal avenues if penalized, ultimately halting exports to the EU if necessary. The EU has increasingly relied on LNG from the Middle East and the US since Russia’s invasion of Ukraine in 2022, though the bloc still receives some Russian gas via Ukraine, a deal set to expire on December 31.
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