Qatar may cease its natural gas shipments to the European Union if member states rigorously implement a new law designed to combat forced labor and environmental degradation, as stated by Energy Minister Saad al-Kaabi in an interview released on Sunday, December 22.
In a discussion with the Financial Times, Kaabi expressed his discontent with the Corporate Sustainability Due Diligence Directive, which mandates that large corporations operating within the EU ensure their supply chains are devoid of forced labor and do not inflict environmental harm. Companies found in breach of this directive could incur penalties of up to 5 percent of their global revenue.
Kaabi remarked, “If I am to lose 5 percent of my generated revenue by engaging with Europe, I will refrain from doing so. I am not making empty threats. A 5 percent loss in revenue for QatarEnergy translates to a 5 percent loss for the state of Qatar. This represents the people’s funds, and I cannot afford such a loss—nor would anyone accept it.”
In his capacity as chief executive of QatarEnergy, Kaabi urged the EU to reconsider the implications of the law, emphasizing that it could have profound effects on Qatar’s energy exports to Europe.
Qatar has faced scrutiny regarding its treatment of migrant workers, particularly under the Kafala system, which has been linked to forced labor, human rights violations, racism, and gender discrimination, according to the Council of Foreign Relations.
As one of the leading exporters of liquefied natural gas (LNG), Qatar is expanding its global presence in both Asia and Europe amid increasing competition from the United States, the top supplier. The Gulf nation aims to boost its LNG production capacity from 77 million tons per year to 142 million tons by 2027.
Kaabi indicated that Qatar is not concerned about US President-elect Donald Trump’s commitment to lifting restrictions on LNG exports. He affirmed that Qatar remains dedicated to diversifying its export markets, even as it confronts the challenges posed by new European regulations.
