No. 233/2016 | 28-09-2016
PKN ORLEN Management Board approval for conclusion of the individual contract with PGNiG S.A.
Polski Koncern Naftowy ORLEN S.A. (“PKN ORLEN”) announces that on 28 September 2016 PKN ORLEN Management Board gave consent for conclusion of an individual contract with PGNiG S.A. (“PGNiG”) for natural gas deliveries (“Individual Contract”).
On the base of the Individual Contract PGNiG will deliver natural gas to ORLEN Capital Group in Poland starting from 1 October 2016 to 30 September 2021 (5 gas years). By signing of the Individual Contract PGNiG will become a strategic provider of the natural gas to ORLEN Capital Group in Poland in the coming years. The estimated value of the Individual Contract in the five-year period could amount to over PLN 7 billion (on the base of current market conditions).
According to the provisions of the Individual Contract the agreement, signed on 2 June 1997 between PKN ORLEN and PGNiG for natural gas deliveries to the Plant in Płock (“Agreement from 1997”), shall be terminated by mutual agreement of the parties. The Agreement from 1997 was to be effective till the end of the gas day on 30 September 2017.
The Individual Contract will be concluded on the condition that the PGNiG Supervisory Board will approve its provisions as well as the agreement, signed on 14 January 1999 for indefinite period, between Anwil S.A. and PGNiG for natural gas deliveries will be terminated by mutual agreement of the parties.