News
02.08.2010 PGNiG SA to Deliver Gas to KGHM Polska Miedź SA
On July 30th 2010, Polskie Górnictwo Naftowe i Gazownictwo SA signed a contract with KGHM Polska Miedź SA under which 266 million cubic metres of natural gas annually will be sold to KGHM Polska Miedź SA. The value of the contract is estimated at PLN 4.0 billion.
Given that some projects are still to be completed, the contract provides for the commencement of deliveries to KGHM Polska Miedź on July 1st 2012, although that date may be postponed to December 31st 2012.
As provided for in the contract, gas supplied to KGHM Polska Miedź SA will be used as a power generation fuel to power two combined cycle (gas and steam) units with the capacity of 45 MWe each. The gas is to be delivered to the terminals in Głogów (Żukowice) and Polkowice, via the distribution network operated by Wielkopolska Spółka Gazownictwa Sp. z o.o.
The new contract will remain in force from the date of its execution until June 30th 2033. Its consequences include the termination of two earlier contracts for the delivery of natural gas for power generation purposes to the terminals in Żukowice and Polkowice.
The estimated maximum contractual penalties may exceed 10% of the contract's value, depending on the quantities ordered but not collected by KGHM Polska Miedź SA. The contract contains no provisions under which compensation in excess of the contractual penalties may be sought.
The contract with KGHM Polska Miedź SA represents another stepping stone in the implementation of PGNiG SA's strategy envisaging an increase in domestic gas consumption from the current level of ca. 14 billion cubic metres to ca. 17-18 billion cubic metres in 2015, of which 2 billion cubic metres are to be supplied to gas-fuelled power generation plants.
In the middle of June, PGNiG SA signed a contract for deliveries of approx. 450 million cubic metres of gas annually to oil major Grupa Lotos. The deliveries, whose initial volumes are to reach ca. 400 million cubic metres, are due to commence in 2012.
In May 2010, PGNiG SA - through its subsidiary PGNiG Energia - signed a contract with Tauron Polska Energia SA providing for the construction and operation of a gas-powered CHP plant comprising a combined cycle unit. The unit, which will consume approx. 550 million cubic metres of gas fuel annually, is scheduled to be put into operation in 2014.
