Qatar’s Energy Minister Saad al-Kaabi said on Thursday that gas producers should demonstrate clearly that they are not in favor of trade barriers by recapitulating his objections to a law on sustainability in the European Union.
One of the largest exporters of liquefied natural gas (LNG) in the world, Qatar has claimed that the corporate sustainability due diligence directive (CSDDD) adopted by the EU in 2024 would represent a major threat to state-owned QatarEnergy.
The EU regulation obliges bigger firms that work as members of the bloc to trace and rectify human rights and environmental problems in their supply lines or risk paying financial fines, such as fines amounting to 5 percent of worldwide revenue.
The European Parliament decided on Wednesday to consider additional modifications to the sustainability regulations, with Qatar and the U.S., the leading gas producer in the world, putting pressure on Brussels to weaken the law.
At a ministerial meeting of the Gas Exporting Countries Forum in Doha, Al-Kaabi added that “We must be clear in our opposition to trade barriers and discriminatory measures that disadvantage energy products, especially natural gas.”
Al-Kaabi informed Reuters last week that Qatar will not be allowed to enter any business in the EU, even in the delivery of LNG, unless there is an additional amendment of the corporate sustainability regulations of the bloc.
During a press conference later that day, he reiterated the Qatari position on the EU law.
He stated to reporters that “There is no way that we can supply any country” that would impose a fine of 5% on global turnover.”
By cutting supplies to Europe, he added that this “is something we absolutely do not want to do, and this is why we have been warning about this. I was one of the first people to be vocal about it.”
Earlier on Thursday, Al-Kaabi also reported that the future of natural gas and LNG in particular is bright “despite geopolitical tensions and faltering climate policies.”
He further stated that this optimistic position is informed by the economic expansion in Asia and the surging power demand in data centers and artificial intelligence.
