Qatar warns EU sustainability law could end its LNG exports to Europe
The Cradle | October 17, 2025
Qatar’s Minister of Energy, Saad al-Kaabi, said on 16 October that Doha would be unable to continue supplying liquefied natural gas (LNG) to Europe if the EU fails to revise its corporate sustainability rules.
In an interview with Reuters, Kaabi warned that the Corporate Sustainability Due Diligence Directive (CSDDD), adopted in 2024, poses a “significant risk” to state-owned QatarEnergy – one of the world’s largest LNG exporters.
The regulation requires major companies operating within the bloc to identify and address human rights and environmental violations in their supply chains or face fines.
Kaabi, who also serves as QatarEnergy’s chief executive, said his concern centers on potential penalties of up to five percent of a company’s total global revenue for failing to meet the EU’s climate-transition requirements under the Paris Agreement.
He said such exposure could make it impossible for QatarEnergy to justify doing business in Europe.
“QatarEnergy will not be able to justify doing business in the EU, be it in LNG or other products, due to the significant risk it would be exposed to due to the overreaching nature of the proposed regulations, which will ultimately harm the European end consumers,” Kaabi told Reuters.
Qatar currently supplies between 12 and 14 percent of Europe’s LNG needs under long-term contracts, including with Shell in the UK.
Kaabi said Doha has been attempting for nearly a year to “constructively engage with the key players at both the European Commission and every EU Member State” on the directive, but has received no reply.
Reuters confirmed that the European Commission did not immediately respond to its request for comment.
Earlier this week, the European Parliament’s legal committee supported efforts to soften the law following pushback from corporations, but Kaabi said the amendments “did not address key concerns.”
He urged Brussels to make further changes or risk discouraging investment and weakening the bloc’s competitiveness.
“Europe must decide if it wants to continue to attract investment into the bloc by further changing CSDDD, or risk undermining efforts to strengthen its competitiveness and prevent economic deterioration,” he said.
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