Qatar vows to stop EU gas sales if fined under due diligence law, FT reports

(Reuters) - Qatar will stop shipping gas to the European Union (EU) if member states strictly enforce a new law cracking down on forced labor and environmental damage, Energy Minister Saad al-Kaabi told the Financial Times in an interview published on Sunday.

The Corporate Sustainability Due Diligence Directive, approved this year, requires larger companies operating in the European Union to check whether their supply chains use forced labor or cause environmental damage and to take action if they do. Penalties include fines of up to 5% of global turnover.

"If the case is that I lose 5% of my generated revenue by going to Europe, I will not go to Europe. I’m not bluffing," Kaabi told the newspaper, adding that "5% of generated revenue of QatarEnergy means 5% of generated revenue of the Qatar state. This is the people's money, so I cannot lose that kind of money - and nobody would accept losing that kind of money."

Kaabi, the chief executive of state-owned QatarEnergy, has said the EU should thoroughly review the due diligence law. He has also said that his Gulf country has no concerns about U.S. President-elect Donald Trump's promise to lift a cap on liquefied natural gas exports.

Qatar, among the world's top LNG exporters, is seeking to play a larger role in Asia and Europe as competition from top supplier the United Sates increases. It plans to expand its liquefaction capacity to 142 million tons per year by 2027 from 77 million.

(Reporting by Gursimran Kaur in Bengaluru; Editing by William Mallard)