Two of Europe’s biggest gas suppliers, ExxonMobil and QatarEnergy, have issued sharp warnings to the European Union, saying they could halt gas supplies and investments unless the bloc loosens its planned sustainability legislation that could fine large corporations up to 5% of their global revenue.

At the ADIPEC energy conference in Abu Dhabi, Exxon CEO Darren Woods described the EU’s proposed Corporate Sustainability Due Diligence Directive as having “disastrous consequences” if implemented as is. The directive seeks to hold companies accountable for environmental and human rights violations throughout their supply chains, even those outside Europe.

“If we can’t operate successfully in Europe and worse, if they try to extend this harmful legislation to our operations worldwide, it becomes impossible to stay there,” Woods affirmed.

QatarEnergy’s CEO and Qatar’s Energy Minister Saad al-Kaabi made similar remarks, revealing that the company has contingency plans in case it decides to suspend liquefied natural gas (LNG) shipments to Europe. He emphasized that this threat is “not a bluff.”

Europe needs the gas

Reiterating his stance during ADIPEC’s opening session, Kaabi argued that Europe’s climate ambitions risk colliding with energy realities.

“We can’t reach net zero, that’s one of the law’s unrealistic requirements,” he said. “Europe needs gas from Qatar, from the U.S., from many places around the world. It’s very important that they take this seriously.”

Woods, meanwhile, criticized the law’s demand that companies align with the Paris Agreement’s 1.5°C target, calling it technically unfeasible and legally overreaching.

“What’s astounding is that it doesn’t only apply to our European operations, it would force us to comply globally, even in markets unrelated to Europe,” he said.

Key suppliers to Europe

ExxonMobil and Qatar Energy are among the EU’s most important LNG suppliers. The U.S. provided nearly half of Europe’s LNG imports in 2024, while Qatar accounted for 12% to 14% since Russia’s invasion of Ukraine in 2022 disrupted supplies.

Both companies have invested heavily in the region. ExxonMobil says it has poured €20 billion ($23.3 billion) into Europe over the past decade, while QatarEnergy maintains long-term contracts with Shell, TotalEnergies, and ENI.

Governments in Doha and Washington have also urged the EU to reconsider the directive, warning it could jeopardize Europe’s access to reliable and affordable energy at a time of global uncertainty.

The European Parliament has reopened discussions on the legislation, with final amendments expected by year’s end.

As Europe strives to lead the global green transition, the standoff with two of its biggest energy partners underscores the tension between sustainability and supply security. Unless the EU finds a compromise that safeguards both climate goals and energy access, it risks pushing key suppliers away, and reigniting fears of another energy crunch on the continent.