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The project, involving the construction and future operation of a 449.16 MW gas-fired CHP plant in Stalowa Wola, is carried out jointly by the PGNiG Group and the TAURON Group via Elektrociepłownia Stalowa Wola, a special purpose vehicle in which each of the partners holds a 50% interest. The project is to be completed at the turn of 2014 and 2015. The CHP plant will be placed in commercial operation at the end of the second quarter of 2015.

"Construction of a new unit at the CHP plant is consistent with the Strategy Full of Energy (Strategia Pełna Energii), which is based on three core principles: vision, consistency and innovativeness. We change Poland's energy landscape through these three principles. The implementation of the strategy resulted in a number of projects which we may already see on the market and which may soon change the Polish energy policy. Apart from the Stalowa Wola project, these investments also include construction of the Gazoport facility in Świnoujście and the construction of over 1,000 km of gas pipelines which will allow us to create a mature and effective gas market," said Mikołaj Budzanowski, Minister of State Treasury.

It is estimated that the Stalowa Wola unit will generate approx. 3,500 GWh of electricity per year, while burning 600 million cubic meters of gas.

"Elektrociepłownia Stalowa Wola will be one of the largest customers of PGNiG SA and the first gas-fired unit of this size in Poland. The project will strengthen PGNiG's position as an energy conglomerate, and will also considerably change the structure of the demand for gas. We expect more such projects to be launched and the demand for natural gas from the power generation sector to reach 2-3 billion cubic meters per year in the second half of the decade. I am convinced that our plans to increase natural gas production, which includes the launch of shale gas production and the new trading opportunities, will make natural gas increasingly more attractive to the power sector," asserted Grażyna Piotrowska- Oliwa, President of the Management Board of PGNiG.

The unit will generate electricity in high-efficiency cogeneration, and heat in the form of water for municipal needs and process steam for the local industry.

"The new unit will contribute to improving Poland's energy security and will be the largest and most advanced facility of its kind in the country. High efficiency, low carbon dioxide emissions, low SOx and NOx emissions, and low fixed costs will be the main benefits offered by the new unit. The construction of the new unit in Stalowa Wola is an element of the TAURON Group's investment programme designed to secure fuel diversification and development of an optimal energy mix," said Dariusz Lubera, President of the Management Board of TAURON Polska Energia.

The Stalowa Wola project is an initiative which is reflected in the respective strategies of PGNiG and TAURON Polska Energia. The Tauron Group seeks to rebuild its production capacities and increase the share of energy generated from own sources, while PGNiG wishes to acquire a new major gas customer and expand its presence in the power sector.

The joint venture was started at the end of 2008 when Tauron and PGNiG executed a letter of intent confirming the parties' intention to cooperate. On December 7th 2009, the parties entered into an agreement outlining the project's framework. The execution agreement was signed on May 7th 2010, while the agreement on the operation of Elektrociepłownia Stalowa Wola, agreement for the sale of electricity and agreement for supply of fuel gas were executed on March 11th 2011. The tender procedure carried out by Elektrociepłownia Stalowa Wola was completed in April 2012, which allowed the company to execute the agreement with Abener, the general contractor.

Abener is one of the companies of the international Abengoa, which implements innovative technology solutions for sustainable development in the energy and environmental protection sectors. The company is listed on the Spanish stock exchange. In 2011, Abengoa reported revenue of EUR 7,089bn, with net profit at EUR 857m, thanks to diversified operations in Europe, USA, Asia and Africa. The Abengoa employs over 22 thousand personnel around the world, of which 1.4 thousand work for Abener. The construction of conventional power plants has brought the company global success. It has executed projects with the total installed capacity exceeding 6000 MW (1300 MW under construction) in such countries as Spain, Mexico, Brazil, Argentine and Morocco.

The project in Stalowa Wola will also bring benefits for the town and the entire region.

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TAURON Polska Energia SA is one of the largest companies in Poland and the parent of a group, whose business consists in coal mining, heat and electricity generation, electricity distribution and trading and heat distribution and sale. Being the largest retail electricity provider in Poland and the second largest electricity producer, the TAURON Group seeks to diversify its production capacities by utilising gas fuel.

Polskie Górnictwo Naftowe i Gazownictwo SA is a leader on the Polish natural gas market. Its business consists in exploration and production of natural gas and crude oil, as well as import, storage, trade and distribution of gas and liquid fuels. In line with its strategy, PGNiG intends to expand the scope of its operations and extend the value chain by engaging in such activities gas-fired electricity generation and electricity trading.

Press Team                                                                                        Press Office

PGNiG SA                                                                                            TAURON Polska Energia SA