In November 2022, as Europe was struggling with a growing energy crisis, Germany sealed a deal with Qatar for the import of 2 million tonnes of liquefied natural gas (LNG) annually from the Gulf State.
Beginning in 2026, the agreement, which part of Europe’s broad strategy is to reduce the dependence on Russian gas after Ukraine’s full -scale invasion of Russia.
Nearly three years later, Qatar has threatened to organize LNG delivery in Europe in a line on the instructions of an European Union with a view to improving moral standards in global trade.
German newspaper Well M Sontag Last weekend (July 26/27) said that the Qatari officials have urged several European Union governments to revise the instructions from the European Union.
The letters warned that, without adequate changes, LNG in Qatar markets can redirect “more stable and business -friendly environment”.
European Union Accountability Law
Corporate stability diligence instructions (CSDD) of the European Union were adopted last year, order ordered to examine the European firms to investigate its global supply chains – from raw materials to finished products – to present and fix issues such as human rights or environmental damage.
It is directed that companies develop climate transition schemes alliances with the 2015 Paris Agreement.
While CSDDD has been praised by human rights and environmental advocates, it has criticized industry groups and non-European Union suppliers for its high cost, administrative burden and international legal scope.
Qatar has complained that the climate protection rules of the instruction “are beyond the objectives and intentions of the Paris Agreement”, stating that “the citizen liabilities for high fines, punishment, and non-non-non-non-non-non-non-non-compliance” raise a risk for the world’s largest LNG manufacturer.
Energy-rich Qatar child on net-gero goals
CSDDDs struggles with Qatar’s national energy strategy. The Gulf country’s economy is deeply linked to LNG, a “green” transition fuel instead of climate liability.
Qatar has said that he wants to progress gradual, average towards carbon-clicking, without reducing its energy exports.
“Qatar and some other oil producers and exporters have not yet set a net-zero route,” Andreas Golddhau, a public policy pRofesar told DW at Erfart University in Germany. Goldthau said that it posed a threat to the European Union punishment for failure in compliance with CSDDD.
Under the instructions, the firms may be fined up to 5% of the global annual turnover if they exclude proper hard work. For qatarergy, which reported $ 48.6 billion (€ 42.2 billion) in revenue for 2024, which could translate into a fine of $ 2.43 billion.
Qatar supplied LNG on Ukraine
According to the data provider KPler, Qatar has supplied 12–14% of Europe’s LNG since starting in Ukraine in early 2022, sending a total of 37.1 million metric tonnes of gas to the block. The 2022 deal with Germany is expected to further promote Europe’s supply.
Analysts have warned that any disruption in these versions, the peak may, during winter demand, can tighten the supply and trigger a renewed bounce in energy prices.
Thiery Bros, a professor at the University of Sciences PO in Paris, told DW that it was “uncertain” that Qatar was now supplying as “no company”, “No company wants to be exposed to” a company “”Obly complex and piece of Burdensome law. ,
,Herler said that instead of entering the prevailing dialogues, Qatar has chosen a more vocal approach – to work quickly and decisively for the situation for a complete discount from the instruction, “Herr said.
CSDDD delays rollouts after EU intensive lobbying
The European Union states were expected to convert CSDDD into national law until next year, initially over 5,000 employees and firms with an annual turnover of more than € 1.5 billion. By 2029, small firms with head count of 1,000 or more will be requested to comply.
But Germany, France and Italy, as well as the choice of finance and energy sectors, faced pushbacks, the European Union has now proposed a double delay by June 2028.
“The European Union already rested some of those requirements, pushed back some in the second part of some decade,” Goldtha said.
A major legal questions are now loose: Can Brussels legally impose standing penalty on non-European Union firms like Qatarergy? Experts believe that practical challenges and trading implications can complicate any enforcement action. If not, the financial burden may move to its European partners.
“IThe mporthars with legal institutions within Europe are said to be the feathers by the proxy with payment, “Goldthau estimated.
Qatar’s danger: right steps, wrong moment?
Qatar’s move may be strategic sound, but its timing has increased eyebrows. Some analysts believe that Qatar is taking advantage of recent US-EEU trade tension to push for exemption.
But on 27 July, Brussels agreed to $ 750 billion (€ 650 billion) of US LNG shopping as part of the tariff deal with US President Donald Trump, leading to a major setback for the country’s outlook.
Goldthau said, “I am surprised why Qatar put it forward just.” Eventually, he said, Trump has just signed a deal that gives Brussels another excuse to “axis to the US”.
But Bros look at it differently, assuming that Qatar’s move has been given a good time to capitalize on Europe’s dull vulnerability from the post -Europe’s energy crisis.
He said, “LNG market is tight and possibly staying for one and three years, gives Qatar significant benefits at the right time to fix the pressure,” he said.
With the demand for global LNG, 2030 per year is estimated to be more than 600 million tonnes per year, the expansion and long -term contracts of Qatar’s north -term contracts helped the Emirates in position as an important supplier for Europe.
But if the rules of the European Union become a lot of burden, Qatar can speed up its axis in Asia, where the demand is booming and compliance cost is very low.
Edited by: Uwe Hessler
