08.02.2017 PGNiG will deliver gas to ArcelorMittal in Poland. Another contract with a big natural gas recipient
The three-year contract with an extension option for further three years can be valued at PLN 1.4 bn. By 2023 total volume of gas supply can reach 1.6 bcm.
Polish Oil and Gas Company (PGNiG) has signed a long-term agreement for natural gas supplies for ArcelorMittal works in Poland. Contracts are in force from January 1, 2017 until January 1, 2020 with an option for extension until January 1, 2023. The volume of supplies during this time may reach the total of ca. 1.6 bcm and the contract value may amount to ca. PLN 1.4 bn. The contract grants ArcelorMittal flexible purchases of natural gas based on market conditions at prices related to power exchange indices.
– PGNiG offers modern European-standard conditions for purchasing natural gas. As a company with the biggest experience on the natural gas market in Poland we perfectly know the needs of our customers and we are actively working on developing the best individual solutions for each of them – commented Maciej Woźniak, Vice-President of the PGNiG Management Board, responsible for Trade. – We are glad that we will be able to sell gas to such a significant and demanding recipient from the industry sector which ArcelorMittal is. We expect further extension of our cooperation – he added.
– This contract provides us with competitive conditions for gas purchases for the next years. To us signing of the deal is also an essential element of expanding the cooperation between our companies in the scope of projects which will be advantageous to both parties of this agreement – said Geert Verbeeck, CEO and Deputy Chairman of the Board of Directors, ArcelorMittal Poland.
The individual contracts in the scope of the general agreement signed by ArcelorMittal Poland and ArcelorMittal Warszawa provide for the possibility of additional gas supplies in the future.