Qatari LNG under pressure from war. Poland’s Orlen cancels its first long-term contract

Polish energy group Orlen has terminated one of its two long-term liquefied natural gas (LNG) supply contracts with QatarEnergy. The contract, for one million tonnes a year (roughly 15 TWh/year), was due to run until 2034. The reason is a prolonged interruption to deliveries linked to the war in Iran. According to Reuters, this is the first known termination of a long-term QatarEnergy contract since the conflict disrupted Qatari exports.

Orlen announced the contract termination on Tuesday, 10 November. Poland’s largest energy group said it had exercised its contractual right to withdraw from the agreement because of the continuing supply disruption. QatarEnergy had been unable to meet its supply obligations while the force majeure situation persisted.

The contract was to secure the purchase of one million tonnes of LNG a year until 2034. For now, the decision applies to one of the two long-term agreements between the companies. It does not mean that Orlen is ending all its contractual relations with the Qatari supplier.