Qatar’s energy minister Saad al-Kaabi has warned that Qatar may halt its liquefied natural gas (LNG) exports to the European Union, including key hubs like Belgium’s Zeebrugge terminal, if the bloc enforces strict penalties under a new human rights and environmental law.

The European Corporate Sustainability Due Diligence Directive (CSDDD), which comes into effect in 2027, requires large companies to ensure their supply chains are free from human rights abuses, labour exploitation and environmental damage. Non-compliance could lead to fines of up to 5 per cent of a company’s global annual revenue. The directive also applies to non-EU companies with significant revenue in Europe, including Qatari gas firms like QatarEnergy.

Al-Kaabi, who heads QatarEnergy, one of the world’s largest LNG exporters, told the Financial Times that such penalties would make supplying LNG to Europe unviable. “If I lose 5 per cent of my revenue by supplying to Europe, I won’t supply to Europe”, he said. “Five per cent of QatarEnergy’s revenue is 5 per cent of Qatar’s state revenue.”

Qatar is a crucial LNG supplier to Europe, especially after the bloc reduced its reliance on Russian gas following the invasion of Ukraine in 2022. Belgium’s Zeebrugge terminal plays a key role in this energy flow: nearly a third of its LNG comes from Qatar. Currently, 8.1 per cent of Belgium’s gas consumption is sourced from the Gulf state.

^{#FlandersNewsService | A LNG gas transporter at Fluxys terminal in the Zeebrugge harbour © BELGA PHOTO NICOLAS MAETERLINCK}