No. 50/2020 | 03-09-2020
Signing a letter of intent between PKN ORLEN and PGNiG concerning analysis of possibilities of realization of common investments
PKN ORLEN S.A. (“PKN ORLEN”, “Company”) informs that on 3 September 2020 there has been signed a letter of intent between the Company and PGNiG S.A. (“Letter of intent”), (“Parties”), in which the Parties declared the will to start the common talks to analyse possibilities of common investments: building a gas power plant and development of biogas plant (“Projects”). The scope of Projects includes building a CCGT block in Ostrołęka with the net power of ca. 750 MW by the end of 2024 and analytical and development works on biogas production with a target to create a technological, science, law and economic base to create a biogas plants network with the power of ca. 2,0-2,2 MW each by the end of 2025. Joint investment in the project of building of CCGT block will depend on additional arrangements with the parties of the agreement dated 2 June 2020, about which the Company informed in regulatory announcement no 33/2020 dated 2 June 2020.
The goal of the Letter of intent, ie. analysis of possibilities of realization of the abovementioned investments, will be achieved through signing of binding agreements between Parties, that will assure the realization of the target cooperation on the scope of Letter of intent (“Agreements”).
According to provisions of the Letter of intent the Parties will conduct talks to agree the assumptions and conditions of the Projects as well as the Agreements provisions, regarding mainly the following issues:
• To agree law and technical conditions to realise the Projects by the Parties as well as any other factors that could influence the Projects realization;
• To agree rules of financing of the Projects;
• In case of gas plant building: preparing a joint venture agreement regulating rules of cooperation of the Parties in Project realization;
• To agree other conditions of the Projects realization.
The parties will make its best effort to prepare the draft Agreements by 30 October 2020.
The Letter of intent is does not constitute legally binding obligation of the Parties to realise the Projects.