Qatar warns EU of gas supply cuts over new regulations
Qatari Energy Minister Saad al-Kaabi warns that Qatar may halt gas supplies to the European Union if penalized under new EU regulations. "I'm not bluffing," he said in an interview with the "Financial Times."
In a conversation with the "Financial Times," Qatari Energy Minister Saad al-Kaabi warned that his country might stop supplying gas to the European Union.
The reason is the new EU regulations concerning environmental protection and human rights, which could result in fines of up to 5% of annual revenues for companies.
"If I lose 5% of my revenues by supplying Europe [with natural gas], I will not supply it. (...) I'm not bluffing," al-Kaabi stated in an interview published on Sunday.
Regulations? "Unworkable"
The EU directive, which came into effect in July, requires companies to ensure sustainable development and the observance of human rights. In case of violations, financial penalties are possible.
Qatar, a key supplier of liquefied natural gas to Europe, has long-term contracts with Germany, France, Italy, and the Netherlands. Al-Kaabi, who is also the CEO of QatarEnergy, believes that the regulations are unworkable for his company.
Criticism of the EU directive
The new regulations have faced criticism both within and outside the EU. Member countries must incorporate them into national law by 2026, and full implementation is expected by 2027.
The directive is part of the EU's strategy to achieve zero carbon emissions by 2050.
Source: Onet/ Financial Times/WP
