Qatar may stop supplying gas to EU countries if they adhere to a new law that imposes penalties on companies for failing to meet requirements regarding greenhouse gas emissions, labor rights, and human rights protection, Qatar's Energy Minister Saad al-Kaabi (who is also the CEO of national oil and gas company QatarEnergy) told Financial Times (FT).
Report informs via Interfax that the law, set to take effect in 2027, would allow countries to impose fines of 5% of a company's total annual revenue. The legislation, approved in May 2024, was adopted as part of the goal to achieve zero greenhouse gas emissions by 2050.
"If I lose 5% of profits on supplies to Europe, I won't supply there. I'm not bluffing. 5% of QatarEnergy's revenue is 5% of Qatar's state revenue. This is people's money, so I can't lose such money. And no one can accept losing such money," he stated.
He emphasized that it's extremely difficult to verify all QatarEnergy suppliers for labor law compliance. Additionally, given QatarEnergy's specialization, the company cannot follow EU zero emissions goals.
According to him, the new law could also affect Qatar's fertilizer and petrochemical supplies to the EU, as well as Qatar's Sovereign Fund investments.
However, the Energy Minister noted that the company won't terminate existing LNG supply contracts. He added that compromise is possible if penalties only apply to the portion of revenue from Europe rather than total company revenue.
FT reminds that Qatar is one of the world's main LNG exporters and is becoming increasingly important for Europe due to the Ukrainian crisis. Previously, QatarEnergy signed long-term LNG supply contracts with Germany, France, Italy, and the Netherlands.