Polskie Górnictwo Naftowe i Gazownictwo SA reports that in response to an application from Operator Gazociągów Przesyłowych Gaz-System S.A., it has introduced commercial limitation of natural gas supplies to Zakłady Chemiczne Police S.A. (starting from January 31st 2012) and to PKN Orlen S.A. and Zakłady Azotowe Puławy S.A. (starting from February 1st 2012).The limitations have been imposed in conformity with the terms of the applicable gas sales agreements and in agreement with each of the companies. We inform at the same time that other customers of PGNiG SA are receiving natural gas in accordance with their needs.  

On January 31st 2012, PGNiG Energia, a subsidiary Polskie Górnictwo Naftowe i Gazownictwo SA, commenced trading in electricity and CO2 emission allowances on the Polish Power Exchange.

For the fourth time, Polskie Górnictwo Naftowe i Gazownictwo SA has been included in the select group of companies listed as part of the Respect Index, Central and Eastern Europe's first corporate social responsibility index run by the Warsaw Stock Exchange.

Polskie Górnictwo Naftowe i Gazownictwo SA intends to increase its natural gas production to 4.9 billion cubic metres in 2013, from 4.7 billion cubic metres of gas planned to be produced in 2012. This increase will be possible mainly owing to natural gas production in Norway, which will reach 0.4 billion cubic metres in 2013, compared to 0.2 billion cubic metres in 2012.

Polskie Górnictwo Naftowe i Gazownictwo SA has finished work on the Felsted-1 exploration well on the Jutland Peninsula.

PGNiG SA has signed three letters of intent regarding cooperation with respect to exploration for and development of shale gas resources in Poland. The three separate LOIs have been signed with PGE, Tauron Polska Energia and KGHM. Pursuant to the signed documents, each partner declared its will to conduct joint operations with PGNiG SA at selected locations within the Wejherowo licence held by the Company. As exploration for shale gas is a top priority project for PGNiG SA, the Company is open to all initiatives allowing it to intensify work in that area.

Polskie Górnictwo Naftowe i Gazownictwo SA has been granted the Shale Gas Company of the Year award by Petroleum Club Magazine.

In 2011, Polskie Górnictwo Naftowe i Gazownictwo SA sold 14.4 billion cubic metres of natural gas, recording sales close to the level achieved in 2010. Gas production rose to 4.3 billion cubic metres in 2011, from 4.2 billion cubic metres in 2010.

PGNiG Norway, a subsidiary of Polskie Górnictwo Naftowe i Gazownictwo SA, has been awarded interests in three exploration and production licences in Norway by the Norwegian Ministry of Energy and Petroleum, as part of the APA 2011 licensing round. For the first time, PGNiG Norway has been awarded operatorship in one of the licences.

On January 18th 2012, the Gas Industry Museum in Warsaw will host a conference on the SiteChar project.

Polskie Górnictwo Naftowe i Gazownictwo SA has finalised a transaction consisting in the purchase of over 99.8% of Vattenfall Heat Poland shares. This has been one of the largest acquisitions in the history of Polish energy market.

On January 9th 2012, Polskie Górnictwo Naftowe i Gazownictwo SA issued notes for a total amount of PLN 4.7bn under the Note Issuance Programme executed in June 2010.

On January 5th 2012, Prof. Stanisław Rychlicki, Chairman of the Supervisory Board of PGNiG S.A., tendered his resignation from the position for important personal reasons. The resignation will come into effect on January 10th 2012.