ORLEN S.A. has moved to end one of its two liquefied natural gas (LNG) contracts with QatarEnergy LNG after months of delivery failures, while saying its group’s gas needs remain covered.
In a Nov. 10 regulatory filing, Orlen said the crude-linked agreement provides for 1 million tonnes of LNG a year through 2034. It estimated the contract’s value for 2026 at €570 million.
Orlen is retaining a separate QatarEnergy LNG agreement for up to 1 million tonnes annually through 2034, with prices linked to gas rather than crude oil. The company said its own production and other long-term contracts cover ORLEN Group’s requirements.
QatarEnergy halted LNG production on March 2 following a military offensive and declared force majeure for affected customers on March 4. It later said strikes on March 18 and 19 damaged two of 14 production units at its main LNG export plant. Force majeure allows a supplier to suspend contractual deliveries when events beyond its control prevent them.
The National reported that QatarEnergy has extended force majeure monthly, with its latest notice covering affected shipments through year-end. The outlet said buyers in Europe and Asia have sought replacement LNG on the spot market at prices reaching multiyear highs. Italy’s Edison has also reported an extension affecting its Qatari LNG deliveries through year-end.
Bloomberg reported that Orlen is the first QatarEnergy customer to cancel a supply contract. Orlen has signed LNG supply deals tied to the Port Arthur project in Texas and the Plaquemines project in Louisiana, according to company announcements.
The contract targeted for termination remains in effect for 60 days after Orlen’s Nov. 10 notice, its filing said.
