PGNiG: Signing of a letter of intent to the possibility of conducting joint investment in the field of biomethane with ORLEN Południe

Further to the Current Report No. 45/2020 of September 3rd 2020 regarding a letter of intent to analyse the possibility of conducting joint investments concerning construction of a gas power plant and a biogas plant with Polski Koncern Naftowy ORLEN S.A. (“PKN ORLEN”), the Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA (the “Company”, “PGNiG”,) hereby announces that on May 5th 2021 the Company signed a letter of intent to the possibility of conducting joint investment aiming at development of biomethane production (“Investment”) with ORLEN Południe S.A. (“ORLEN Południe”), a subsidiary of PKN ORLEN.
The Investment will be based on joint investment (joint venture) conducted by ORLEN Południe and PGNiG (“Parties”), in particular through a special purpose vehicle (the “SPV”), whereas ORLEN Południe will acquire a 51% ownership interest in the SPV, with the remainder to be acquired by PGNiG. The intention of the Parties is that the subject of the SPV business is focused on: acquisition and construction of biomethane installations, development of technologies used for biomethane production as well as trade, production and use of biomethane in various areas of Parties’ activities.
The Parties will conduct negotiations aimed at, inter alia, defining: the rules for establishing and financing of the SPV, shareholders’ agreement as well as rules of cooperation and investment schedule. The establishment of the SPV will be possible after obtaining consent from the relevant antitrust authorities.