Qatar warns it'll halt natural gas exports to EU over forced labour law that threatens 5% revenue loss

Qatar may stop shipping natural gas to the European Union if member states strictly enforce a new law aimed at curbing forced labour and environmental damage, Energy Minister Saad al-Kaabi said in an interview published Sunday (December 22).

Speaking to the Financial Times, Kaabi criticised the Corporate Sustainability Due Diligence Directive, which requires large companies operating in the EU to ensure their supply chains are free of forced labour and do not cause environmental harm. Companies found in violation could face fines of up to 5 per cent of their global revenue.

“If the case is that I lose 5 per cent of my generated revenue by going to Europe, I will not go to Europe,” Kaabi said. “I’m not bluffing. Five per cent of generated revenue of QatarEnergy means 5 per cent 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.”

More from World

Nepal's new PM pays homage to people died during the Gen Z protest in her first national address This Week in Explainers: How recovering from Gen-Z protests is a Himalayan task for Nepal

Kaabi, who also serves as chief executive of QatarEnergy, urged the EU to reassess the law, saying it could have significant consequences for Qatar’s energy exports to Europe.

Qatar, has been criticised for its treatment of migrant workers, particularly under the Kafala system, which has been associated with forced labour, human rights abuses, racism, and gender discrimination, according to the Council of Foreign Relations.

Qatar might face greater competition in LNG exports

Qatar is one of the world’s top exporters of liquefied natural gas (LNG) and is expanding its global role in both Asia and Europe as competition from the US, the leading supplier, intensifies. The Gulf state plans to increase its LNG production capacity from 77 million tons per year to 142 million tons by 2027.

Kaabi noted that Qatar has no concerns about US President-elect Donald Trump’s pledge to lift caps on LNG exports. He said that Qatar remains committed to diversifying its export markets, even as it navigates challenges posed by new regulations in Europe.

Impact Shorts

More Shorts

‘The cries of this widow will echo’: In first public remarks, Erika Kirk warns Charlie’s killers they’ve ‘unleashed a fire’

Trump urges Nato to back sanctions on Russia, calls for 50–100% tariffs on China

With inputs from agencies