Qatar Threatens to Halt EU Gas Sales Amid Due Diligence Law Concerns
Qatar has vowed to halt gas sales to the EU if fined under the new due diligence law, which checks for forced labor and environmental damage in supply chains. CEO Saad Sherida Al-Kaabi stated any fines could lead to a significant loss of state revenue, which he cannot accept. Qatar aims to boost its LNG capacity amid increasing competition from the U.S.
Recent reports indicate that Qatar has threatened to cease gas sales to the European Union (EU) if it is fined under the forthcoming EU due diligence law. The law aims to ensure that supply chains do not utilize forced labor or contribute to environmental degradation, with penalties that could reach 5% of global turnover. Saad Sherida Al-Kaabi, CEO of QatarEnergy, stated, “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.” He emphasized that any financial loss would significantly impact Qatar’s national revenue derived from gas sales, remarking, “5% of generated revenue of QatarEnergy means 5% of generated revenue of the Qatar state. This is the people’s money, so I cannot lose that kind of money – and nobody would accept losing that kind of money.” As one of the leading liquefied natural gas (LNG) exporters globally, Qatar is intent on expanding its influence in the Asia and European markets, especially as competition from the United States intensifies. The nation plans to increase its liquefaction capacity from 77 million tons per year to 142 million by 2027, positioning itself as a crucial player in the global energy market.
The proposed EU due diligence law marks a significant shift in regulations regarding supply chain practices across member states. This initiative aims to address concerns about labor exploitation and environmental impacts associated with resource extraction and production. It signifies a growing trend globally toward accountability and transparency in sourcing materials and services, reflecting a collective commitment to sustainability and human rights.
In conclusion, Qatar’s firm stance against potential penalties from the EU underscores the complex interplay between international regulations and national economic interests. The remarks from Saad Sherida Al-Kaabi illustrate the critical balance that countries like Qatar must strike as they seek to expand their roles in the global energy landscape while navigating evolving regulatory frameworks. Territories like Asia and Europe remain pivotal in Qatar’s strategic plans as it enhances its liquefaction capabilities.
Original Source: economictimes.indiatimes.com
