No. 235/2016 | 29-09-2016
Conclusion of the individual contract with PGNiG S.A.
Polski Koncern Naftowy ORLEN S.A. (“PKN ORLEN”) announces that on 29 September 2016 PKN ORLEN concluded 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). As a result 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”), has been 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.
Today the conditions suspending conclusion of the Individual Contract have been fulfilled: the PGNiG Supervisory Board approved provisions of the Individual Contract as well as the agreement, signed on 14 January 1999 for indefinite period between Anwil S.A. and PGNiG for natural gas deliveries, has been terminated by mutual agreement of the parties.
See also regulatory announcement no 233/2016 as of 28 September 2016.