Poland's Orlen ends long-term QatarEnergy LNG contract over delivery failure

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Poland's Orlen terminated a long-term QatarEnergy LNG contract due to force majeure from the Iran conflict, ensuring supply security through US and Norway deals

Poland's largest energy group Orlen said on Tuesday it terminated one of its two long-term liquefied natural gas supply contracts with QatarEnergy after a force majeure left the supplier unable to meet its delivery obligations.

The move marks the first known termination of a long-term QatarEnergy LNG contract since the Iran war disrupted ​exports from the world's second-largest LNG exporter. It underscores the commercial toll of the conflict on Qatar's ​LNG business, which buyers had long regarded as one of the most reliable sources of ⁠supply.

The contract covered 1 million metric tons of LNG per year and was due to remain in force until ​2034. But Orlen said it exercised its right to terminate the agreement on Tuesday "due to an ongoing force majeure resulting ​in an inability to meet contractual delivery obligations," adding that the contract will remain in force for 60 days following the notice of termination.

Orlen said last month it expected Qatari LNG deliveries to resume in mid-November after a months-long hiatus caused by the war.

QatarEnergy declared force ​majeure in March following Iranian drone attacks on LNG facilities at Ras Laffan, while tanker traffic through the Strait ​of Hormuz was severely disrupted. The company did not immediately respond to a request for comment outside normal business hours.

Orlen also sources gas produced off the Norwegian continental shelf and in the United States. Earlier this month, Venture Global began commercial deliveries from the first phase of its Plaquemines export plant in Louisiana, where Orlen is a long-term customer.

"The decision to terminate the Agreement does not affect the security of gas supplies. Gas production from the Company's own fields, ​together with its long-term gas ​supply agreements, ensures full ⁠coverage of Orlen Group's gas requirements," the company said in a statement.

Orlen's agreement with QatarEnergy was based on a traditional oil-linked pricing formula that market participants estimate at…

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