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01.06.2009 PGNiG and Tauron to build natural gas power unit

Polskie Górnictwo Naftowe i Gazownictwo SA and Tauron Polska Energia SA will continue their cooperation in the joint construction and operation of a natural gas power unit at the Stalowa Wola Power Plant (Elektrownia Stalowa Wola) owned by Tauron Group. The planned investment is set for completion in 2013. Its estimated cost is 1.8 billion PLN.

In accordance with plans, the new power unit in Stalowa Wola will have a power output of approximately 400 megawatts and will be the largest and most modern natural gas generating unit in Poland. Depending on the degree of use of the unit, the fuel consumption of the power plant coulf reach up to 0.5 billion m³ of natural gas per year. The technology used will ensure compliance with all ecological parameters with very high reliability.
The new natural gas power unit is a regional development opportunity and will help improve the energy security of Podkarpacie.

Since the signing of a letter of intent by Tauron SA and PGNiG SA in the fall of 2008 regarding cooperation in the construction of natural gas power plants, the construction of combined heat and power plants, and power generation using natural gas, a project feasibility study has been prepared and most technical issues have been accepted. It was also decided to jointly appraise possible contributions in kind and the entirety of the Stalowa Wola SA power plant owned by Tauron Group in its current shape. An opinion on this issue will be presented to the boards of PGNiG SA and Tauron SA by the end of June.
The work to date indicates that the completion of the project is justified for both partners based on their strategies. Tauron, as the national leader in energy sales, plans in its corporate strategy the diversification of generating structures by the use of natural gas as fuel. PGNiG, in its strategy, plans for the extension of its value chain and expansion of the scope of its activities by power generation and sales. 
The partners expect that the project will be completed on an equal basis, regarding both rights and obligations.
PGNiG SA is ready to ensure natural gas deliveries for the project and is interested in using 50 percent of the unit’s capacity for the production of electrical power for its own sales needs. The final decision about the form in which the project will be completed will be made by the partners after the completion of business analyses. 


Tauron Polska Energia SA is one of the largest business entities in Poland, a holder in a capital group which conducts coal mining, power and heat generation, power distribution and sales, and heat distribution and sales activities. As the electrical power retail sales leader in Poland and the second largest power generator, Tauron Group aims to diversify its generating structures by the use of natural gas fuel and the development of carbon dioxide collection and storage technologies.


Polskie Górnictwo Naftowe i Gazownictwo SA is the leader of the natural gas market in Poland and conducts the exploration and mining of natural gas and oil deposits as well as the import, storage, sales and distribution of gas and liquid fuels. In its strategy, PGNiG plans for the extension of its value chain and the expansion of the scope of its activities by, among others, the generation of electrical power using natural gas and the sale of electrical power.

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