(Investing) – ABU DHABI -Executives at two of Europe’s top gas suppliers, and QatarEnergy, on Monday warned they could stop doing business with the European Union if it does not significantly loosen a sustainability law that could impose fines of 5% of their global revenue.
Exxon CEO Darren Woods told Reuters on the sidelines of the ADIPEC meeting in Abu Dhabi that the EU’s Corporate Sustainability Due Diligence Directive would have “disastrous consequences” if adopted in its current form.
The directive requires companies doing business in the bloc to address human rights and environmental risks across their supply chains, and aims to hold companies accountable for harm even in operations outside Europe.
“If we can’t be a successful company in Europe, and more importantly, if they start to try to take their harmful legislation and enforce that all around the world where we do business, it becomes impossible to stay there,” Woods said.
Qatar’s Energy Minister Saad al-Kaabi, who is also QatarEnergy’s CEO, told Reuters at the same conference that the gas giant has contingency plans in place if it decides to halt European shipments – a threat Kaabi has repeatedly warned is not a bluff.
’WE CAN’T REACH NET ZERO’
Speaking at ADIPEC on Monday, Kaabi reissued a threat to halt supplying Europe with liquefied natural gas, saying it will not be able to continue doing business in Europe if the EU doesn’t change or cancel the law.
“We can’t reach net zero, and that’s one of the requirements, among other hosts of things,” said Kaabi.
“Europe needs to understand that, I think, they need the gas from Qatar. They need gas from the U.S.,” he said. “They need the gas from many places around the world … it’s very important that they look at this very seriously.”
Woods said the legislation demands that large companies like ExxonMobil implement climate transition plans aligned with the Paris Agreement’s goal of limiting global warming to 1.5°C above pre-industrial levels – a requirement he described as technically unfeasible.
“What’s astounding to me is the overreach not only requires us to do that for the business that we’re doing in Europe, but it would require me to do that for all my business around the world, irrespective of whether it touches Europe or not,” he said.
COMPANIES AMONG EUROPE’S TOP SUPPLIERS
ExxonMobil and QatarEnergy are among Europe’s top LNG suppliers, with the U.S. major contributing to the roughly 50% of EU imports from American producers in 2024, while Qatar has supplied between 12% and 14% of the bloc’s LNG since Russia’s 2022 invasion of Ukraine.
Europe is also a significant market for both companies, with Exxon saying last year it had invested 20 billion euros ($23.32 billion) in the region in the previous decade, while QatarEnergy has long-term supply contracts with Britain’s , France’s , and Italy’s .
The two companies, whose gas shipments to the continent ramped up sharply after it cut off supplies from Russia, are now pushing the bloc to abandon part of its green strategy.
The governments of Qatar and the U.S. last month urged European heads of state to reconsider the law, which they said threatens Europe’s supply of reliable, affordable energy.
The European Parliament has agreed to negotiate further changes to the law, and the EU aims to approve the final changes by year-end.
“We would love to serve Europe. We have been committed to Europe,” Kaabi said. “We’re not asking for anything special, we’re saying we want to compete in a market that is fair.”
