Qatar Energy will stop supplying LNG to the EU if it comes to fines

Qatar's national oil and gas company Qatar Energy will stop supplying LNG to the EU if the community countries impose fines of 5% of annual revenue, the Financial Times reports.

According to the directive adopted in May 2024, the countries The EU should introduce fines for non-compliance with criteria related to carbon dioxide emissions, human rights and labor rights in the amount of at least 5% of the annual revenues of companies.

These measures will come into force in 2027 and are part of the EU policy aimed at achieving zero emissions into the atmosphere by 2050.

"If it comes to the point that I will lose 5% of revenue by going to Europe, I will not go to Europe. I'm not bluffing... 5% of QatarEnergy's revenue means 5% of the revenue of the state of Qatar. This is people's money, so I can't lose that much money, and no one will accept the loss of that kind of money," said Qatar's Minister of State for Energy Affairs and Qatar Energy CEO Saad bin Sharida al-Kaabi.

According to him, in its current form, this directive will be unworkable for large energy companies. Qatar Energy, al-Kaabi added, will not be able to meet the criteria The EU has zero CO2 emissions due to the volume of hydrocarbons produced by the company.

Qatar ranks 3rd in the world in terms of natural gas reserves and 6th in terms of its production. In October 2024 Qatar has become the third largest exporter of LNG after the United States and Australia, according to a report by the Gas Exporting Countries Forum.