Polish energy group Orlen has terminated one of its two long-term LNG supply agreements with QatarEnergy, following a prolonged force majeure event that has prevented the Qatari company from meeting its contractual delivery commitments (Orlen’s press release, 10/11/2026). Orlen specified that the agreement will remain formally effective for a further 60 days following the notification of termination.
The contract in question was initially signed in 2009 between QatarEnergy (then known as Qatar Liquefied Gas Company) and Polskie Górnictwo Naftowe i Gazownictwo (PGNiG). It provided for annual deliveries of 1 Mt of LNG, equivalent to approximately 15.3 TWh. Supplies began in 2016, with the agreement originally scheduled to run until 2034. Nevertheless, Orlen confirmed that it would continue to honour its second agreement with QatarEnergy. Based on a pricing formula linked to gas price quotations, this contract covers deliveries of up to 1 Mt/year of LNG through 2034.
The terminated agreement relied on a traditional oil-indexed pricing formula. Such arrangements were widespread when the deal was signed in 2009, but buyers now have access to less expensive LNG supplies, particularly from the United States (US), under alternative pricing structures (Reuters, 10/11/2026).
QatarEnergy invoked force majeure in March 2026, after Iranian drone strikes targeted LNG facilities at Ras Laffan, while shipping through the Strait of Hormuz was severely disrupted. This is the first publicly known termination of a long-term LNG supply agreement with QatarEnergy since the war involving Iran disrupted exports from the world's second-largest LNG exporter. The decision highlights the commercial consequences of the conflict for Qatar's LNG business, which has traditionally been considered by buyers as one of the most reliable sources of supply.
Qatar is adjusting its energy strategy as negotiations between the United States and Iran remain deadlocked and maritime traffic through the Strait of Hormuz continues to face disruption. QatarEnergy has recently signed long-term agreements with US-based LNG producers Cheniere Energy and Woodside, both of which own LNG supply assets in the US.
Although deliveries under these agreements are expected to begin in the early 2030s, the deals reflect Qatar's efforts to mitigate the risk of prolonged disruptions to shipping through the Strait of Hormuz. Most of Qatar's LNG production comes from the North Dome gas field, which it shares with Iran, making the country dependent on the strait to export its LNG. Securing supplies from LNG producers outside the region would enable QatarEnergy to maintain deliveries to its customers in the event of further disruptions in the future.