SEATTLE (Oil Monster): Polish energy major Orlen has terminated one of its long-term liquefied natural gas (LNG) supply agreements with QatarEnerg, following several months of supply disruptions in connection with the ongoing Iran conflict. The decision marks a significant setback for Qatar's long-standing LNG supply relationships with European buyers.
The contract covered annual deliveries of 1 million tonnes of LNG and was scheduled to continue until 2034. Orlen exercised its termination rights on November 11, citing QatarEnergy's continued inability to meet contractual obligations. The agreement will formally remain in effect for another 60 days following the termination notice. Meanwhile, Orlen will retain its second long-term contract with QatarEnergy, covering up to another 1 million tonnes annually through 2034.
QatarEnergy invoked force majeure in March after Iranian drone strikes damaged LNG infrastructure at Ras Laffan. The deliveries to international customers were interrupted due to restrictions on shipping through the Strait of Hormuz.
The Polish company said its decision would not affect domestic gas availability. Its supply portfolio includes Norwegian production, U.S. LNG imports and output from its own gas fields.
