PGNiG : Current Report No. 20/2017

2017.03.14 08:17 Current Report No. 20/2017

Warsaw, March 14th, 2017
Execution of a side agreement with Qatar Liquefied Gas Company Limited (3)
Current Report No. 20/2017
The Management Board of Polskie Górnictwo Naftowe i Gazownictwo S.A. ('PGNiG') announces that on March 14th 2017 PGNiG signed a side agreement ('Side Agreement') to the existing Sale and Purchase Agreement with Qatar Liquefied Gas Company Limited (3) ('Qatargas') dd. June 29th 2009.
Under the terms of the Side Agreement, Qatargas will deliver additional volume of liquefied natural gas (LNG) to the President Lech Kaczynski LNG Terminal in Świnoujście. The total volume of LNG within the long-term contracts with Qatargas will now increase to 2 million tonnes per annum (MTPA) which equals to ca. 2,7 billion cubic meters (bcm) of gas, except for years 2018-2020 when the supplied volume will be increased to 2,17 MTPA ca. 2,9 bcm of gas.
Based on the assessment of the Management Board of PGNiG, pricing terms of the Side Agreement are satisfactory and in line with PGNiG's Strategy to optimize its gas portfolio management and are expected to have a positive impact on the PGNiG Capital Group financial results.
Deliveries under the Side Agreement will start from the beginning of 2018 and will run until June 2034.These supplies will increase the diversification of PGNiG's gas portfolio and will contribute to optimization of regasification capacity booked by PGNiG at the President Lech Kaczyński LNG Terminal in Świnoujście.
The disclosure of information concerning the process of negotiations of the Side Agreement was delayed on December 14th 2016 until this day according to Article 17 paragraph 4 of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.