PGNiG: Signing of a letter of intent to analyse the possibility of conducting joint investments concerning construction of a gas power plant and a biogas plant

The Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA (“PGNiG”, “Company”) announces that on September 3rd 2020 PGNiG and Polski Koncern Naftowy Orlen S.A. (jointly “Parties”) signed a letter of intent to analyze the possibility of conducting joint investments (“Letter of Intent”) concerning projects of: construction of a CCGT gas power plant in Ostrołęka and development of biogas plant (jointly “Projects”).
The Parties intend to establish a general framework for their potential cooperation to implement the Projects, including in particular:

• the legal, technical and any other conditions that may be relevant to the feasibility of the Projects;
• the terms of financing the Projects;
• in the case of construction of a gas-fired power plant: the provisions of a joint venture agreement.

The Letter of Intent does not contractually bind the Parties to carry out the Projects. However, the Parties will use their best efforts to draft binding agreements under which they would cooperate as contemplated by the Letter of Intent, by October 30th 2020.

Project of CCGT in Ostrołęka assume the construction of a unit with a planned nominal power output of approx. 750 MW net by the end of 2024. The biogas development project includes analytical and development works in the biogas area, including the acquisition and expansion of test biogas plants and the launch of pilot production. Ultimately, the construction of a technological, scientific, legal and economic base is planned to establish a network of biogas plants with a capacity of approximately 2.0-2.2 MW each by the end of 2025.