Qatar’s energy minister warns that the country will stop supplying gas to the European Union if the bloc enforces a new law targeting forced labor and environmental damage.
Qatar has threatened to cease gas exports to the European Union if member states strictly implement a new directive aimed at combatting forced labor and environmental damage. In an interview with the Financial Times, Qatar’s Energy Minister, Saad al-Kabi, warned that the country would reconsider its energy exports if the law leads to significant financial losses.
The directive, passed this year, mandates that large companies operating in the EU examine their supply chains for forced labor and environmental harm. If these issues are found, the companies are required to take corrective action. Non-compliance could result in fines of up to 5% of global turnover.
“If I lose 5% of revenue by leaving Europe, I will not go to Europe. I’m not bluffing,” al-Kabi stated, emphasizing that such a loss would deeply impact QatarEnergy, as it would equate to a loss of significant national revenue. “This is the people’s money, so I can’t afford to lose such a sum.”
Al-Kabi also suggested that the European Union should reconsider the directive, highlighting its potential negative impact on Qatar’s energy exports.
While Qatar is keen to expand its role in both the Asian and European markets amidst rising competition from the U.S., the country remains undeterred by U.S. President-elect Donald Trump’s promise to lift restrictions on LNG exports. As one of the world’s largest exporters of liquefied natural gas (LNG), Qatar plans to increase its LNG production capacity from 77 million to 142 million tons annually by 2027.
