Key Points

Qatar’s energy minister said he is not too worried about US President-elect Donald Trump’s promise to increase domestic production of liquefied natural gas.
“Additional gas will be needed, whether from the United States, Qatar or elsewhere. So more LNG and more competition are welcome,” Saad Sherida Al Kaabi, Qatar’s energy minister and chief executive of state gas company QatarEnergy, told CNBC’s Dan Murphy at the Doha forum on December 7.

Qatar’s energy minister said he is not too worried about US President-elect Donald Trump’s promise to lift the cap on liquefied natural gas exports.

“Additional gas will be needed, whether from the United States, Qatar or elsewhere. So more LNG and more competition are welcome,” Saad Sherida Al Kaabi, Qatar’s energy minister and chief executive of state gas company QatarEnergy, told CNBC’s Dan Murphy at the Doha Forum on December 7.

“If you open up LNG and say we are going to export another 300 million tons… or 500 million tons from the United States, all of these projects are driven by private companies that analyze the commercial viability of the projects, and there will be a limit.”

“Everything will depend on supply, demand and the long-term prospects of these companies,” he added, adding that “that doesn’t worry me much.”

Trump wants to “drill, baby, drill”; in other words, boost national production of oil and natural gas. His transition team is crafting an energy package to be implemented within days of him taking office that would approve export permits for new LNG projects and increase oil drilling in the country, Reuters reported.

“If you make the decision to have an LNG facility or an export facility, and you decide to do it today, it takes six to 10 years to get it up and running,” he said, emphasizing that it is not an “on, off” move. .

The United States and Qatar have maintained their position as the world’s largest LNG suppliers, with a combined market share of almost 50%. Competition between the two top exporters has intensified this year after Europe’s decision to phase out reliance on the Russian gas pipeline 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 fine can reach up to 5% of the total revenue generated by a company, Kaabi added, stressing that it would “harm” European companies and those operating in the bloc, which will be subject to higher costs to complete due diligence.

The CSDDD, which will come into force 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 assets estimated at $510 billion, according to the Global SWF, and other fund managers would consider withdrawing investments from the EU to avoid sanctions, he added.

“It’s very serious for them,” Kaabi said, adding that European economies “are not doing very well, so they need foreign direct investments and support.”