Gas as a bargaining chip. Qatar ready to stop exports to Europe

Qatar has announced the possibility of suspending deliveries of liquefied natural gas (LNG) to the European Union in response to new regulations on carbon dioxide emissions and corporate due diligence rules. Qatar’s Energy Minister, Saad al-Kaabi, in an interview with the Financial Times, emphasized that restrictive regulations may force the country to limit exports to the EU.

Qatar reacts to new EU rules

EU regulations, adopted in May, aim to reduce CO₂ emissions and protect human rights in the activities of companies. They require companies to comply with the principles of due diligence, which includes rigorous ethical and ecological standards. If they are violated, companies can be fined up to 5% of annual revenues.

Qatar’s Energy Minister stated that the introduction of such penalties could result in a complete cessation of LNG supplies to Europe. – If we lose 5% of revenue, we will stop exporting gas to Europe – said al-Kaabi, adding that his warning is not a bluff.

Europe’s dependence on Qatari LNG

Qatar, one of the world’s largest LNG exporters, has gained importance as a key supplier of gas to Europe during the energy crisis caused by the war in Ukraine. The European Union, reducing its dependence on Russian gas, has in recent years intensified cooperation with Qatari suppliers.

However, new regulations may pose a serious challenge to this cooperation. Non-EU companies with a net turnover in Europe of more than €450 million are also subject to these rules. Qatar, as one of the main players on the LNG market, considers them too strict and a threat to its position.

Controversies surrounding EU regulations

The directive adopted by the European Union is part of a broader plan to achieve climate neutrality by 2050. While it supports environmental goals, it has faced criticism from both companies and suppliers outside Europe. Many believe that the new regulations may negatively affect the competitiveness of enterprises and the stability of energy supplies.

Amid rising tensions between the EU and Qatar, the question remains whether Europe can afford to lose a key LNG supplier in the current energy crisis.