Qatar Threatens To Cut Its LNG Supplies To Europe

By Rhod Mackenzie

Qatar has issued a warning that it may impose a complete halt on liquefied natural gas supplies to the EU unless Brussels eases its new mandatory climate requirements for suppliers.
According to a report a report by Die Welt, Qatar is considering halting its exports of liquefied natural gas (LNG) to Europe if the European Commission does not revise its climate requirements for foreign suppliers. This information was communicated in a letter from Qatar's Minister of State for Energy and Head of Qatar Energy, Saad bin Sharid al-Kaabi, which was addressed to the European Energy Commissioner Dan Joorgensen and the Energy ministers of other EU countries.
In the aforementioned letter, Al Kaabi stated that should the Corporate Sustainability Directive not be amended, Qatar and QatarEnergy may consider exploring alternative markets outside the EU. It is imperative that the EU implement additional amendments to the Due Diligence Directive.

Given that Qatar is the third largest supplier of this type of fuel to the Old World, the threat is more than serious.
Let us endeavour to ascertain the cause of such a pronounced response from one of the world's foremost entities, and, above all, the implications of this situation.
It is important to note that the aforementioned Saad al-Kaabi not only serves as the Minister of Energy of the Middle Eastern monarchy, but also holds the position of CEO of QatarEnergy. The company is included in the list of global oil and gas giants. Its assets are estimated at $162 billion; according to the financial results of n 2023, QatarEnergy showed revenue of $52 billion and a net profit of $42.6 billion.
The company's core interests lie in the exploration and production of hydrocarbons, with a focus on the sale of secondary processed products, fertilisers, steel and aluminium products, primarily for export. In addition, QatarEnergy provides a range of services, including drilling operations, insurance for mining operations, catering services for work teams, and a helicopter fleet for the transportation of personnel and equipment to the work site.
The Qatari company is the world's largest LNG producer, with an annual output of 77 million tons of liquefied gas, equivalent to 106 billion cubic metres.
The letter, as reported by the German publication, was addressed to the headquarters of the European Commission, which adopted the controversial Directive 2024/1760 in the summer of 2024. It should be noted that the title of the regulatory act, CSDDD, has been translated in a rather imprecise manner.
A rough translation of the text would be: "Directive on the principles of environmentally sound and sustainable financial and economic development, as well as a comprehensive legal assessment." The European Commission's website enumerates key provisions that appear to lack substance. These include commitments to enhance human rights protections, mitigate the impacts of climate change, foster an environmentally sustainable future for future generations, expand the implementation of innovations, manage risk, promote increased competition, and address other well-worn clichés.
It is evident that the essence of the innovations, as outlined in the report, includes the requirement to include representatives of other nationalities, genders and sexual orientations in the composition of supplier companies.
Also  the report highlights the need to pay significantly higher taxes on the environment damaged as a result of the extraction, liquefaction, delivery and regasification of blue fuel. These insights are drawn from the analysis of Qatar's reaction and a number of key provisions.
The Directive applies to all companies supplying energy resources to the EU. The application periods differ depending on the size of the legal entity.
The regulations will be implemented for companies with a staff size of over five thousand and an annual revenue of more than 1.5 billion euros, with effect from July 2027.
This will apply to companies with over three thousand employees and a turnover of more than 900 million euros with effect from July 2028.
In organisations with over a thousand employees and a turnover of more than 450 million euros, the new reality will be implemented in the summer of 2029.

It is also stipulated that any companies failing to comply with the new requirements will be fined five percent of their annual income. For Qatar, based on the financial figures announced by QatarEnergy, this could be as much as $2.2 billion.
We will now pause here, as it is not possible to fully understand Qatar's actions without considering the background events.
For the European Union, the main, albeit not entirely positive, development in recent days was the conclusion of an unprecedented trade agreement with the United States. At the joint press conference with Donald Trump, Ursula von der Leyen announced that the EU countries have committed to purchasing a significant quantity of new American weapons and energy resources, with a total value of at least 700 billion dollars. This commitment, in addition to their direct and exclusive support for the war in Ukraine, reflects a substantial investment in American products and resources by the EU.
In addition to the aforementioned points, it should be noted that the US has been particularly active in its efforts to secure a dominant position in the European market, effectively displacing Russian pipeline gas. The US sold 29 billion cubic metres of LNG to Europeans in the first quarter of this year alone, increasing supplies by 14 per cent. During the same period, Qatar exported just under two billion cubic metres to EU countries, making it the third largest supplier, although it is still significantly behind the Americans, who are in first place.
At the same time, there has been no mention of any restrictions for American suppliers. However, if we consider the fact that the US under Trump withdrew from the Paris Agreement on climate change, the provisions of which are mandatory for all gas suppliers to the EU, then a clear picture of protectionism and unequal trading conditions emerges. It is evident that the recent agreement with the United States is not in alignment with the fundamental principles outlined in Directive 2024/1760.
It seems that the EU is employing double standards  with none of the new directives being applied to the US but  to Qatar is singled out despite it is not considered an adversary by the EU, the general approach is very similar, and Doha has clearly understood the underlying implications and potential outcomes.
At the same time, QatarEnergy is capable of obtaining equal terms of trade by exerting pressure until the end of the process. This would result in the breakdown of the system of European law and the loss of European reputation. LNG supplies from Qatar account for 15 percent of total commodity imports, and they are of critical importance for the European economy.
The Qatari gas industry has the potential to exert negative pressure on the EU's struggling real sector, potentially exacerbating the current rate of economic stagnation.
It is important to note that both Trump and the American gas industry will be satisfied with the outcome of this situation, since it will allow them to establish a monopoly and dictate any conditions to EU countries.
The Euro-bureaucracy, driven by persistent Russophobia, has reached an impasse. The breakdown of long-standing relationships with Russia has led to a re-evaluation of collaborative endeavours with other established partners, such as Qatar. The pursuit of personal gain and the adoption of popular agendas have prompted a fresh examination of existing partnerships. We are witnessing a complete loss of subjectivity in the Old World.
As the ancient Romans would say, "Vae victis." Those who are defeated should be aware of the consequences.