Under a framework agreement and bilateral contracts, PGNiG will supply natural gas to five companies of the Grupa Azoty Group, including the companies based in Tarnów, Puławy, Police and Kędzierzyn, as well as to Siarkopol.

The agreement expires in September 2019. The total volume of supplies throughout the term of the agreement may amount to as much as 4.5bn cubic metres. The value of the agreement is estimated at ca. PLN 3.3bn.

“Today’s meeting, during which two major state-owned companies signed an agreement, proves that economic patriotism is about specific ideas, goals and, first and foremost − their implementation − aimed at building a strong and independent Poland which attracts investors and is friendly to entrepreneurs”, said Mr Dawid Jackiewicz, Minister of the State Treasury. “It is partnering and efficiently managed enterprises from industries of strategic importance for the state that provide foundations for a wealthy and internationally respected Poland”, he stressed.

 

Under the agreement, PGNiG will supply natural gas to five companies of the Grupa Azoty Group: Grupa Azoty S.A. of Tarnów, Grupa Azoty Zakłady Azotowe Puławy S.A., Grupa Azoty Zakłady Chemiczne Police S.A., Grupa Azoty Zakłady Azotowe Kędzierzyn S.A., and Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki Siarkopol S.A.

“The agreement marks a new stage in the cooperation between PGNiG S.A. and the Grupa Azoty Group. The contracts not only guarantee reliable supplies, but also provide for market mechanisms ensuring that gas will be acquired at prices linked to exchange indices. The agreement provides for innovative solutions for the supplies, based on the competitive offer of PGNiG, our strategic supplier. Also, it is certainly not without significance that our cooperation, based on the arm’s length principle, involves creating stronger ties between two enterprises of key importance to the Polish economy”, comments Mariusz Bober, President of Grupa Azoty.

 

PGNiG S.A. and Grupa Azoty have signed a framework agreement which defines the general terms of cooperation between the Parties, as well as individual contracts for purchase of natural gas by each of the Grupa Azoty Group companies. The framework agreement provides for the possibility of concluding additional contracts for further supplies in the future.

“The agreement signed today with our largest, and thus strategic, gas customer marks a new phase in the history of our relations. I am delighted to see that we have developed new, satisfactory terms of cooperation with Grupa Azoty for the next few years. PGNiG has always sought to meet customer needs. As a result, we can offer attractive terms of gas sale on the liberalised market, and our customers can enjoy reliable and predictable terms of supplies. I believe that the cooperation will not only help PGNiG retain its leading position on Poland’s natural gas market, but also contribute to a rapid growth in sales”, concluded Mr Maciej Woźniak, Vice-President for Trade at PGNiG S.A.

 

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The Grupa Azoty Group is one of the leading players on the European fertilizer and chemical markets. It comprises a number of entities, including Grupa Azoty S.A. (the parent, based in Tarnów), Grupa Azoty Zakłady Azotowe Puławy S.A., Grupa Azoty Zakłady Chemiczne Police S.A., and Grupa Azoty Zakłady Azotowe Kędzierzyn S.A. The Grupa Azoty Group is now the second largest EU manufacturer of nitrogen and compound fertilizers, and its other products, including melamine, caprolactam, polyamide, oxo alcohols and titanium white, enjoy an equally strong standing in the chemical sector, with a wide range of applications in various industries. Grupa Azoty S.A. has been listed on the Warsaw Stock Exchange since 2008, and since 2013 it has been a constituent of the new WIG30 index. Since 2009, Grupa Azoty S.A. has also been included in the RESPECT Index, the first CSR-focused index in Central and Eastern Europe, and since 2015 – in the FTSE Emerging Markets index. It is the first company from the CEE region to feature in ICIS TOP 40 Power Players 2015, listing 40 most influential names in the global chemical industry, and in Boston Consulting Group’s ranking table of the ten chemical companies most attractive to investors.

 

Polskie Górnictwo Naftowe i Gazownictwo S.A. is the leader in the Polish natural gas market. PGNiG S.A. is a publicly traded company, listed in the WIG20 index of the Polish blue-chip stocks. The company’s business comprises exploration for and production of natural gas and crude oil, and − via its key subsidiaries − import, storage, sale and distribution of gas and liquid fuels, as well as heat and electricity generation. PGNiG S.A. holds equity interests in 29 subsidiaries, including providers of specialist geophysical, drilling and well services, highly valued on international markets. PGNiG S.A. holds branches and representative offices in Russia, Pakistan, Belarus and Ukraine. PGNiG S.A. is the sole owner of PGNiG Upstream International AS, engaged in upstream activities on the Norwegian Continental Shelf and the Norwegian Sea; POGC - Libya BV, conducting hydrocarbon exploration operations in the Murzuq Basin in Libya; PGNiG Supply & Trading GmbH in Munich, which trades in gas; and PGNiG Finance AB in Stockholm, incorporated for the purpose of issuing eurobonds on the European market.