QatarEnergy CEO Saad Sherida Al-Kaabi announced that Qatar would halt gas sales to the EU if fines under a due diligence law are imposed. The law requires companies to ensure their supply chains do not involve forced labor or environmental harm, with fines reaching 5% of global turnover. Qatar seeks to enhance its LNG market share while planning significant capacity expansions, aiming to counter rising competition from the U.S.
In a recent statement to the Financial Times, Saad Sherida Al-Kaabi, Chief Executive of QatarEnergy, asserted that Qatar would cease selling gas to the European Union should it be subjected to severe penalties under the new due diligence law. The law mandates that companies check their supply chains for forced labor and environmental damage, imposing fines of up to 5% of global turnover for noncompliance. “If the case is that I lose 5% of my generated revenue by going to Europe, I will not go to Europe. This is the people’s money, so I cannot lose that kind of money,” Kaabi emphasized. As one of the leading exporters of liquefied natural gas (LNG), Qatar aims to enhance its presence in the Asian and European markets, particularly in light of increasing competition from the United States. The nation plans to boost its liquefaction capacity significantly by 2027, demonstrating its commitment to maintaining a strong foothold in the global energy market.
The European Union has introduced a due diligence law that aims to ensure companies monitor their supply chains for human rights violations, such as forced labor, and mitigate any resultant environmental harm. This law is part of a broader move towards corporate responsibility and sustainability. Businesses found in violation of these regulations face substantial penalties, exemplified by fines that could reach 5% of their total global revenue. At the same time, QatarEnergy is actively seeking to enhance its export capabilities and market share as a leading LNG supplier, particularly amidst rising competition.
In conclusion, Qatar’s strong stance against potential fines from the EU reflects its commitment to protecting national revenues while navigating complex international regulatory frameworks. The country’s strategic expansion plans underscore its ambition to remain competitive in the global LNG market, particularly against the backdrop of increasing dynamics in energy supply across the globe. Thus, QatarEnergy’s leadership remains cautious but resolute in maintaining its economic interests.
Original Source: economictimes.indiatimes.com
