Orlen Terminates One of Its Long-Term LNG Supply Deals with QatarEnergy

Orlen Terminates One of Its Long-Term LNG Supply Deals with QatarEnergy

Poland’s largest energy group, Orlen, has terminated one of its two long-term liquefied natural gas (LNG) supply agreements with QatarEnergy after the Qatari producer failed to meet its delivery commitments due to force majeure, Reuters reported.

The terminated agreement covered 1 million metric tons per year (mmtpa) of LNG and was scheduled to run until 2034. Orlen said it exercised its termination rights on November 11, citing the continued force majeure that has prevented QatarEnergy from fulfilling its contractual obligations. The agreement will remain in effect for 60 days following the termination notice.

QatarEnergy declared force majeure in March after Iranian drone attacks damaged LNG facilities at Ras Laffan, disrupting production and exports. Meanwhile, restrictions on tanker movements through the Strait of Hormuz further affected Qatari LNG shipments amid the Iran war.

Despite the termination, Orlen will retain its second long-term LNG supply agreement with QatarEnergy, which covers up to 1 mmtpa through 2034.

Orlen said the move would not affect its gas supply security, citing domestic production and long-term supply arrangements. The company also sources natural gas from Norway and the United States.

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Fatma Ahmed 2831 Posts

Fatma Ahmed is a staff writer with six years’ experience in Journalism. She is working in the field of oil and gas for four years. She also worked in the field of economic journalism for 2 years. Fatma has a Bachelor Degree in Mass Communication.

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