Qatar and the US ask EU to reconsider sustainability directive over LNG

Qatar and the United States have sent a letter to officials from European Union countries expressing deep concern about the directive on corporate sustainability due diligence (CSDDD) and its unintended effects on competitiveness in liquefied natural gas (LNG) trading. QatarEnergy, Qatar’s state-owned company, announced this today, according to Reuters. Qatar’s energy minister, Saad al-Kaabi, told Reuters last week that Qatar would be unable to supply LNG to Europe to meet its energy needs unless the CSDDD is changed.

A letter signed by al-Kaabi and US Energy Secretary Chris Wright says the directive poses a significant risk to the availability and reliability of vital energy supplies for households and businesses across Europe, as well as an existential threat to the future growth, competitiveness and resilience of the European Union’s industrial economy.

The CSDDD requires large companies operating in the EU to check that their supply chains do not use forced labour or harm the environment. Companies that fail to meet these obligations face fines. Last week, the European Parliament’s Legal Affairs Committee backed plans to ease the directive after facing opposition from companies. However, al-Kaabi added that the changes do not address the key problems.

Qatar is the world’s second-largest LNG exporter after the United States. Most of its exports go to Asia, while it ranks third among LNG suppliers to Europe, with an 11 percent share.

The EU is seeking to partly replace Russian gas supplies with liquefied gas from Qatar and the US. In 2024, LNG accounted for 37 percent of the EU’s total natural gas imports. Supplies from the US and Qatar together accounted for nearly 60 percent of the EU’s total LNG imports.