Current Report No. 51/2020
2020.10.21 11:38
Warsaw, October 21st 2020
Approval of gas purchase agreement with Ørsted Salg & Service A/S by PGNiG Supply & Trading GmbH
Current Report No. 51/2020
The Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA (“PGNiG”) hereby announces that on October 21st 2020 a gas purchase agreement was approved with Ørsted Salg & Service A/S by PGNiG Supply & Trading GmbH („PST”), the subsidiary of PGNiG (the „Agreement”).
The supply of gas will start on January 1st 2023 and end on October 1st 2028 and has been approved by PST for volumes expected to total approximately 70 TWh (i.e. approximately 6.4 bcm). Natural gas being the subject of the Agreement, will come from Danish Continental Shelf and PST will have a possibility to export it to, i.e. Germany or Poland. In accordance with the contractual mechanisms governed by the Agreement, PST's purchase of natural gas depends on the gas produced in the Danish North Sea, including Tyra field, which will cover the biggest share of the purchased volumes. Redevelopment of the Tyra field is underway and is expected to be completed in 2022.
The pricing formula used in the Agreement is based on market gas price indices.
