Orlen terminates one of two long-term LNG supply contracts with QatarEnergy, worth about PLN 2.5 billion a year

In brief

• Orlen has terminated one of its two long-term LNG supply contracts with QatarEnergy, citing a force majeure that has stopped deliveries.
• The terminated contract covered up to 1 million tonnes of LNG a year and was estimated at about PLN 2.5 billion annually for 2026.
• The contract remains in force for 60 days after notice, while Orlen continues receiving supplies under its second QatarEnergy agreement.

Termination notice

Orlen said on 10 November that it had exercised its right to end one of two long-term contracts for liquefied natural gas (LNG) signed with QatarEnergy, formerly Qatar Liquefied Gas Company Limited (Gaz przestał płynąć. Orlen rozwiązał jedną z dwóch umów na dostawę LNG z QatarEnergy – Rzeczpospolita) (Orlen rezygnuje z katarskiego gazu. Wartość umowy to ok. 2,5 mld zł – WNP.pl) (Orlen wypowiada kontrakt na katarski gaz. Wartość kontraktu szacowana na 570 mln euro – Bankier.pl). The company gave force majeure as the reason: the supply disruption has lasted and no gas is being delivered. The announcement was made in a stock exchange filing (Orlen wypowiedział umowę z QatarEnergy na dostawy LNG – RMF24).

Contract terms

The terminated agreement covered deliveries of up to 1 million tonnes of LNG a year, priced against oil benchmarks, equal to about 15.3 TWh annually. Orlen estimated its annual value for 2026 at about EUR 570 million, or PLN 2.5 billion (Orlen wypowiedział jedną z umów na dostawy LNG z Kataru. Kontrakt był wart 2,5 mld zł rocznie – Puls Biznesu). The deal was signed on 29 June 2009 by Polskie Górnictwo Naftowe i Gazownictwo, which later became part of Orlen's group, and deliveries began in 2016. The contract was set to run until 2034.

Key figures

• Annual volume: up to 1 million tonnes of LNG
• Energy equivalent: about 15.3 TWh a year
• Estimated annual value (2026): about EUR 570 million, or PLN 2.5 billion
• Original term: 2016 to 2034

What happens next

After the notice was served, the contract stays in force for another 60 days. Orlen said it continues to take supplies under its second agreement with QatarEnergy, which is linked to gas price benchmarks and covers up to 1 million tonnes of LNG until 2034. The company also said gas supplies would not run short.

Background

QatarEnergy attributes the supply halt to force majeure caused by problems linked to the war between the United States and Iran. That conflict is the stated backdrop for the disruption, which has affected Qatari LNG exports and forced buyers such as Orlen to look at their contracts.

Read also

• Orlen to open Singapore trading office; LNG deliveries from Qatar to resume within weeks