The negotiations will concern the volume and price of natural gas to be delivered to the Puławy Power Plant, as well as the start date and schedule of the deliveries. The gas supply contract is to be executed between the parties at least one year prior to the commencement of gas deliveries to the Puławy Power Plant.

“We are the leader of the Polish natural gas market in the area of gas fuel procurement and trading. We have the necessary capabilities and we declare our readiness to provide long-term natural gas supplies that will fully cover demand of the Puławy Power Plant once it is launched,” said Bartłomiej Korzeniowski, Director of the Wholesale Trading Division of PGNiG SA.

“We are working intensively on financing for the Puławy Power Plant project, which also involves efforts to secure long-term gas fuel supplies. The agreement we have signed provides a framework for future negotiations,” said Zygmunt Kwiatkowski, President of the Elektrownia Puławy Management Board.

Elektrownia Puławy Sp. z o.o. is a special purpose vehicle, wholly owned by Grupa Azoty Puławy, established to implement the power project. The entire project, which is to cover Grupa Azoty Puławy’s demand for electricity and process heat in the future, will comprise a CCGT unit and the existing coal-fired CHP plant, which, after being partially upgraded, will play a complementary role to the CCGT unit. Three boilers will be modernised at the existing CHP plant. Such target layout will guarantee the security of process heat and electricity supplies for Grupa Azoty Puławy and will also ensure stability of prices for the company and, in the long term, stabilise the prices of heat for residents of Puławy. EU policy is aimed towards raising CO2 emission charges, which will have an additional impact on the prices of electricity.