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HomeOil and GasQatar Threatens LNG Exit from EU Over Costly Climate Compliance

Qatar Threatens LNG Exit from EU Over Costly Climate Compliance

Qatar issued a Qatar LNG supply warning to the European Union over new sustainability rules. The Gulf state said it may stop LNG exports if the EU keeps pushing stricter climate and labor laws. Qatar sent letters to both Belgium and the European Commission outlining its concerns.

The Qatar LNG supply warning highlights the growing tension between energy suppliers and EU regulators. The EU’s corporate sustainability due diligence directive, or CSDDD, demands that companies fix environmental and human rights issues in their supply chains. Qatar said these rules make it harder to do business in Europe.

Qatar’s Energy Minister said the country could shift its focus to other global markets. He explained that the EU no longer offers a stable environment for long-term energy cooperation. According to Qatar, a predictable business climate is essential for investment in energy infrastructure.

In response, the European Commission confirmed it had received Qatar’s letter. Officials stated that talks to ease the directive’s burden are still underway. The EU has already proposed delaying the law’s start date and reducing the depth of required supply chain checks.

However, Qatar said these changes fall short. The state opposes the clause that asks companies to follow climate plans tied to the Paris Agreement. The directive asks firms to help limit global warming to 1.5 degrees Celsius.

Qatar does not plan to reach net zero shortly. The government says setting carbon targets should be a national choice. It strongly opposes foreign rules influencing local energy strategies.

Qatar proposed removing the climate plan section entirely from the CSDDD. The proposal appeared in an official annex sent with the letter. The country aims to keep control of its energy policy without outside interference.

This Qatar LNG supply warning could impact major European companies. However, Qatar supplies over 12% of the EU’s LNG. Long-term deals are already in place with firms such as Shell, TotalEnergies, and ENI.

If Qatar leaves the EU market, Europe may face higher energy costs and tighter supply. Lawmakers now face pressure to revise the directive or risk losing a key energy partner.

Qatar stressed that it seeks fairness in trade, not conflict. Nevertheless, the country wants its energy policies respected while continuing to support global partnerships.