On October 28 2021, PGNiG submitted to PAO Gazprom and OOO Gazprom Export a letter supplementing PGNiG’s November 2020 request to revise the price of gas supplied under the contract for sale of natural gas to the Republic of Poland of September 25th 1996 (the Yamal Contract) downwards, so that the renegotiation process takes into account the current market situation.

“We’ve witnessed unprecedented increases in natural gas prices across the European wholesale market recently. This extraordinary situation provides a basis for renegotiating the price terms on which we purchase gas under the Yamal Contract. In our opinion, there is room for a reduction of the price of gas supplied to PGNiG,” said Paweł Majewski, President of the Management Board of PGNiG.

Mr. Majewski added that PGNiG also reserved the right to treat the said letter as an independent request for renegotiation of the contract price. These efforts may result in a change of the price of gas received by PGNiG from Gazprom as of November 1st 2021.

The long-term contract between PGNiG and Gazprom provides for the supply of approximately 10 bcm of gas annually. Under the take-or-pay clause contained in the contract, PGNiG is obliged to offtake a minimum of 8.7 bcm of contracted gas annually. The Yamal contract expires in 2022.