PGNiG : Current Report No. 91/2016

2016.09.28 22:07 Current Report No. 91/2016

Warsaw, September 28th 2016
Obtaining corporate approvals for of a long-term contract for the supply of natural gas to PKN ORLEN Capital Group in Poland
Current Report No. 91/2016The Management Board of Polskie Górnictwo Naftowe i Gazownictwo S.A. ('PGNiG', 'Company') hereby informs, that on September 28th, 2016 received an information about the decision of the Management Board of Polski Koncern Naftowy ORLEN S.A. ('PKN ORLEN') to approve an individual contract for the supply of natural gas to PKN ORLEN Capital Group in Poland ('Individual Contract').
The conditions for conclusion of the Individual Contract between parties are: obtaining by the Management Board of PGNiG an approval of the Company's Supervisory Board on the matter as well as the termination, through mutual agreement, contract between Anwil S.A. and PGNiG for the supply of natural gas, which was in force since January 14th, 1999 with no termination date.
The matter of Individual Contract is the supply of natural gas, effective from October 1st, 2016 until September 30th, 2021(5 gas years).
As an effect of signing of the Individual Contract PGNiG will become for the coming years a strategic provider of the natural gas to PKN ORLEN Capital Group in Poland, including CCGTs owned by PKN ORLEN Capital Group.
The estimated value of the Individual Contract could amount to over PLN 7 billion in the five-year period.
According to the provisions of the Individual Contract, the agreement signed on June 2nd, 1997 between PGNiG and PKN ORLEN for natural gas deliveries to the Plant in Płock, shall be terminated by mutual agreement of the parties. The Agreement for 1997 was to be effective by the end of gas day of September 30th, 2017.