Qatar threatens Europe with termination of LNG supplies

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance commented to Business FM about Qatar's threat to stop LNG supplies to the EU due to the EU CSDDD directive.

"We are talking about the due diligence directive on corporate sustainability, which was adopted a year ago and is already in force, but with a delayed start date. At first it was 2027, but it was partially postponed to 2028. Qatar has repeatedly expressed its public displeasure and threatened to cut off supplies.

The main risk that Qatar sees for itself is the penalties provided for in the directive is 5% of the company's global turnover, which Qatar is categorically not ready to do. Qatar points out that under the Paris Agreement, each country has the right to determine for itself the timing and methods of reducing greenhouse gas emissions, and the EU has no right to dictate its terms to other countries. But in this case, the EU continues its long-established policy of expanding European legal norms, primarily climate norms, to other countries, precisely through pressure on countries and companies exporting energy resources and other raw materials.

In principle, Qatar can do without the EU if it really needs to. In this sense, the EU is more interested in Qatari LNG, because, of course, it is possible to switch almost entirely to American LNG, but this creates additional risks of excessive dependence on the United States, which the EU would also like to avoid. Qatar has been and will remain the second most important LNG supplier in the world after the United States in the coming years."