RMF24yesterdayBusiness2 min read

Orlen terminated the contract with QatarEnergy for LNG supplies

The agreement covered the supply of 1 million tons of LNG per year until 2034; the company assures that the security of gas supplies is not at risk

Quick Look

Orlen terminated one of two long-term contracts for the supply of liquefied natural gas with QatarEnergy LNG due to force majeure and lack of supplies.
The agreement provided for the supply of 1 million tons of LNG per year until 2034, worth approximately EUR 570 million per year.
The company assures that there will be no shortage of gas and the second contract is still in force.

AI-generated summary

Why It Matters

Orlen has two long-term contracts for the supply of liquefied natural gas from QatarEnergy LNG. The terminated contract was concluded by Polskie Górnictwo Naftowe i Gazownictwo on June 29, 2009, deliveries began in 2016 and were to be valid until 2034. The second contract, in a pricing formula based on gas price quotations, covers deliveries of up to 1 million tons of LNG until 2034.

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Orlen informs that on November 10, 2026, the company exercised the right to terminate one of the two long-term contracts for the supply of liquefied natural gas concluded with Qatar Liquefied Gas Company Limited (currently QatarEnergy LNG, hereinafter referred to as QatarEnergy) due to persistent force majeure resulting in a lack of supplies - the company announced in a stock exchange announcement.

What did the contract include?

Orlen explained that the contract subject to termination provided for the supply of 1 million tons of LNG per year in a price formula based on crude oil prices, approximately 15.3 TWh per year. The estimated annual value of the contract for 2026 is approximately EUR 570 million, or PLN 2.5 billion.

The company also mentioned that the terminated contract was concluded by Polskie Górnictwo Naftowe i Gazownictwo on June 29, 2009 with QatarEnergy. Deliveries under this contract began in 2016, with the contract running until 2034.

"After giving notice of termination, the contract remains in force for the next 60 days," Orlen noted. At the same time, he assured that he was continuing the implementation of the second contract concluded with QatarEnergy in a pricing formula based on gas price quotations, covering deliveries of up to 1 million tons of LNG until 2034.

Orlen: There will be no shortage of gas

The company also said that "the decision to terminate the contract does not affect the security of gas supplies." As emphasized in the press release, "gas production from Orlen's deposits and long-term contracts for gas supplies ensure full coverage of the Orlen Group's needs."

The Orlen Group is a multi-energy concern that has refineries in Poland, the Czech Republic and Lithuania and a network of gas stations, including in Germany, Slovakia, Hungary and Austria. It also develops the crude oil and natural gas, petrochemical, and energy segments, including those from renewable energy sources. It also plans to develop nuclear energy based on modular SMR reactors.

What to Watch

AI outlook — possibilities, not facts

The agreement will remain in force for another 60 days after notice is given, after which it will be terminated.
Very likely · Within days
Orlen will continue the implementation of the second LNG supply contract with QatarEnergy in a pricing formula based on gas price quotations until 2034.
Very likely · Long term

Open Questions

Has Orlen taken legal action against QatarEnergy LNG due to lack of supplies?
What are the reasons for force majeure preventing LNG deliveries?
Does Orlen plan to conclude a new LNG supply contract with another supplier?