Alerts 5 June, 2019 12:00 pm   
Editorial staff

PGNiG will be a strategic gas supplier for Grupa Azoty until 2022

On May 23, 2019 companies from Grupa Azoty submitted statements to PGNiG SA (Polish Oil and Gas Company) extending the validity of contracts for the supply of natural gas until September 30, 2022.

The contracts concluded on June 21, 2017 between PGNiG SA and five companies from Grupa Azoty, provided for the possibility of extending their validity by two years. The total value of four-year contracts, i.e. covering the supply period from October 1, 2018 to the end of September 2022, is estimated at over PLN 8 billion. The extended contracts provide Grupa Azoty not only with attractive gas purchase mechanisms, indexed to the prices of gas on the market, but also with security of supply, which is crucial for the continuity of production of fertilizer and chemical products.

“For the next two years Grupa Azoty will use the very competitive market conditions for gas purchases negotiated between our companies in 2017. We put a lot of effort into working out a contract model that would be satisfactory for both parties throughout the supplying period. It is an honor and great satisfaction that Grupa Azoty – the strategic recipient of gas in Poland – has chosen PGNiG as its key supplier and that our companies will continue to cooperate for the development of the chemical sector in Poland,” said Maciej Woźniak, Vice-President of the PGNiG Management Board for Trade.

“Cooperation with PGNiG is a guarantee of security and continuity of supplies for Grupa Azoty. As the largest domestic gas consumer Grupa Azoty has concluded this contract as an integrated capital group, which means that we achieve a synergy effect and, as a result, cost optimization. This is one of many examples showing that the strategic consolidation of large chemical synthesis plants within Grupa Azoty is of key importance for the future of the Polish chemical market. I am pleased that we will continue to cooperate with PGNiG on terms favorable to Azoty Group,” commented Mariusz Grab, Vice-President of Grupa Azoty SA Management Board.

The framework agreement between PGNiG SA and companies from Grupa Azoty is open and allows for the conclusion of additional contracts for subsequent volumes in the future. Individual contracts concluded on June 21, 2017, included five companies from Grupa Azoty, ie Grupa Azoty SA based in Tarnów, Grupa Azoty Zakłady Azotowe Puławy SA, Grupa Azoty Zakłady Chemiczne “Police” SA, Grupa Azoty Zakłady Azotowe Kędzierzyn SA and Grupa Azoty Kopalnie and Zakłady Chemiczne Siarki “Siarkopol” SA.