Poland’s Orlen has become the first buyer to cancel a long-term liquefied natural gas (LNG) contract with QatarEnergy, citing an ongoing force majeure that has disrupted deliveries due to the Iran war. The contract, which was set to run until 2034, provided for 1 million tonnes of LNG annually and was valued at approximately €570 million this year. Orlen invoked its right to terminate the agreement after QatarEnergy failed to fulfill its delivery obligations due to prolonged force majeure conditions.
The cancellation follows missile strikes in March that damaged two production units at Qatar’s main LNG export plant, forcing QatarEnergy to declare force majeure on shipments. The measure has been extended monthly, with the latest notice covering shipments until the end of the year. This has pushed buyers in Europe and Asia to seek spot cargoes at elevated prices.
Despite the cancellation, Orlen maintains a second contract with QatarEnergy, which supplies up to 1 million tonnes of LNG annually until 2034. The company assured that Poland’s gas supply remains secure, citing its own gasfields and other long-term supply agreements. Orlen has also secured new deals for LNG from projects in Texas and Louisiana, including Port Arthur and Plaquemines.
This marks the first time a QatarEnergy customer has terminated a contract, highlighting the broader impact of the Iran war on global LNG markets. QatarEnergy, which previously supplied about a fifth of the world’s LNG, has faced significant challenges in maintaining delivery schedules amid ongoing disruptions in the Strait of Hormuz.