Orlen Cancels Long-Term Qatar LNG Contract Amid Force Majeure

Polish state-owned energy firm Orlen has become the first long-term client of QatarEnergy to cancel an LNG supply contract with the Qatari company, according to OilPrice. The cancellation comes amid continued force majeure on exports stemming from tanker security issues in the Strait of Hormuz.

In a regulatory filing from late Tuesday, the Polish firm stated that QatarEnergy has become unable to meet its contractual obligations to supply Orlen with 1 million tons of superchilled gas annually. The original contract was signed in 2009, with deliveries beginning in 2016 and running through 2034.

Export Disruptions and Rebound Efforts

At the end of last month, QatarEnergy extended its force majeure—which has been in force since the spring—through the end of the year. Tanker travel through the Strait of Hormuz remains a highly risky endeavor, with 37 attacks on tankers recorded by Iranian forces in October, marking a monthly record since March.

Despite the ongoing disruptions, Kpler reported that liquefied natural gas exports via the Strait of Hormuz reached 31 tankers last month, up from 23 in September and marking the highest total since February. Most of these cargoes were loaded from Qatar’s Ras Laffan hub, though total liquefied gas exports remain far below pre-war levels at 2.7 million tons last month compared to close to 6.2 million tons in February.

Key facts

• Polish energy firm Orlen canceled its long-term LNG supply contract with QatarEnergy.
• The agreement involved the annual supply of 1 million tons of superchilled gas.
• The contract was originally signed in 2009, with deliveries starting in 2016 and scheduled until 2034.
• QatarEnergy extended its force majeure to the end of the year due to tanker risks in the Strait of Hormuz.