PGNiG: Execution of amendment to Gas Sales Agreement between PGNiG SA and VNG

The Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA (“PGNiG”) reports that on October 17th 2012 PGNiG and VNG – Verbundnetz Gas Aktiengesellschaft of Leipzig (“VNG”) executed Amendment No. 1 (the “Amendment”) to the Gas Sales Agreement of August 17th 2006 (the “Agreement”), whose term runs to 2016 (see Current Report No. 60/2006).The Amendment provides for a new gas pricing formula, which includes elements based on both the prices of petroleum products and the market prices, as well as a new capacity charge rate.The Amendment will take effect as of October 1st 2012.The contracted annual volume of gas has remained unchanged at approximately 400 million cubic metres.The value of the Agreement throughout its remaining term, ie. from October 1st 2012 until October 1st 2016, is estimated at approximately PLN 2.3bn.
See also: Current Report No. 60/2006