Poland's Orlen stands to save up to $2b from QatarEnergy LNG deal cancellation

In a first since the Iran war began, a longstanding deal for liquefied natural gas from the Persian Gulf has been cancelled, a move analysts say could save Poland's Orlen up to $2 billion.

Gulf LNG powerhouse Qatar sustained heavy damage in an Iranian attack in March, forcing it to declare force majeure on deliveries and triggering a spike in prices, including of oil, which the deal was based on.

Force majeure was the reason Orlen cited on Tuesday for dropping the deal, a move analysts say, given its pricing is linked to soaring Brent crude oil, could save it a lot of money. Force majeure also means Orlen faces no penalty for breaking the contract, according to energy industry lawyers.

"Current market conditions offer alternative gas procurement options that are more favourable," an Orlen spokesperson said on Friday.

The spokesperson said current market options were better than those in the contract, which was signed in 2009 and involves pricing based on oil price benchmarks.