If any EU country imposes penalties on Qatar under the bloc’s Corporate Sustainability Due Diligence Directive, Doha would stop exporting its liquefied natural gas (LNG) to the bloc, al-Kaabi told the outlet on Sunday.
QatarEnergy, the state-owned energy company, has long-term LNG contracts with several EU countries, including Germany, France, Italy, and the Netherlands.
The EU’s corporate due diligence rules, adopted in May 2023, are part of the bloc’s strategy to achieve net-zero emissions by 2050. The legislation states that non-compliance is punishable with fines of up to 5% of the company’s annual global revenue.
Al-Kaabi argued that such fines would significantly impact QatarEnergy’s revenue, which directly supports the state of Qatar and its citizens.
”If the case is that I lose 5% of my generated revenue by going to Europe, I will not go to Europe… I’m not bluffing,” Kaabi said.
“I cannot lose that kind of money – and nobody would accept losing that kind of money,” he pointed out.
It would be impossible for an energy producer like QatarEnergy to align with the EU’s net-zero target as stipulated by the directive because of the amount of hydrocarbons it produces, the minister explained.
If slapped with hefty penalties, QatarEnergy would not break its LNG contracts but would try and find legal avenues.
”I will not accept that we get penalized,” he continued, adding, “I will stop sending gas to Europe.”
Following the escalation of the Ukraine conflict in February 2022, the EU started replacing Russian pipeline gas with more expensive LNG from the Middle East and the US. The bloc still gets pipeline gas from Russia via Ukraine’s transit network but the agreement between Moscow and Kiev is set to expire on December 31. The authorities in Kiev have repeatedly stressed that the deal will not be renewed.
