Qatar’s Energy Minister and CEO of QatarEnergy Saad Sherida Al Kaabi speaks at a press conference in Doha on Sept. 1, 2024.
Karim Jaafar | Afp | Getty Images
Qatar’s energy minister said he isn’t too concerned about U.S. President-elect Donald Trump’s pledge to lift the cap on liquefied natural gas exports.
“Additional gas is going to be required, whether it is from the U.S., Qatar or other places. So additional LNG and additional competition is welcome,” Saad Sherida Al Kaabi, Qatar’s energy minister and CEO of state gas company QatarEnergy, told CNBC’s Dan Murphy at the Doha Forum on Dec. 7.
“If you open up LNG and say we are going to export another 300 million tons … or 500 million tons from the U.S., all these projects are driven by private enterprises that look at the commercial viability of projects, and there is going to be a limit.”
“It will all depend on supply, demand and the long-term outlook for these companies,” he added, saying “I don’t worry much about it.”
Trump wants to “drill, baby, drill” — in other words, boost domestic oil and natural gas production. His transition team is putting together an energy package to roll out within days after he takes office that would approve export permits for new LNG projects and increase oil drilling in the country, Reuters reported.
“If you take a decision to have an LNG facility or an export facility, and decide to do it today, it takes six to 10 years to actually have it up and running and operational,” he said, stressing that it is not a “switch on, switch off” move.
The U.S. and Qatar have held onto their position as the world’s biggest LNG suppliers, with a combined market share of almost 50%. Competition between the two major exporters has intensified this year after Europe’s decision to phase out reliance on Russia’s pipeline gas and as U.S. suppliers quickly filled the supply gap.
Kaabi said the European Union needs to “thoroughly” review the Corporate Sustainability Due Diligence Directive — which requires large companies to “identify and address” negative environmental impacts, among others, in their operations.
The penalty can go up to 5% of a company’s total generated revenue, Kaabi added, stressing that it would “harm” European companies and those operating in the bloc, which will be subject to take higher costs to complete the due diligence.
The CSDDD, which will take effect in 2027, is estimated to affect around 5,500 EU-based companies and at least 1,000 non-EU companies with significant business in the region, Reuters reported in July.
The Qatar Investment Authority — which manages estimated $510 billion in assets, according to the Global SWF — and other fund managers would consider pulling investment out of EU to avoid penalties, he added.
“It is very serious for them,” Kaabi said, adding that the European economies “are not doing great, so they need foreign direct investments, and they need support.”
