MOSCOW (MRC) -- PKN Orlen on Wednesday announced a deal potentially worth an estimated zloty (Zl) 18bn (USD4.4bn) to supply fellow Polish state-owned firm Grupa Azoty companies with natural gas, said Reuters.
Orlen and Azoty agreed on a supply contract covering the period running from 1 October this year to the end of September 2026, with an option for a one-year extension, Orlen added.
“The price formula agreed in the new contract is based on the market values ??of gas price indices… the most objective method of pricing, widely used between companies across Europe,” it said in a press release.
The deal will continue the existing commercial arrangement under which oil, gas and petrochemicals group Orlen supplies gas to Azoty, Europe’s second largest fertilizer maker and biggest chemical producer.
More specifically, Orlen will deliver gas to six Grupa Azoty companies, namely Grupa Azoty SA, Grupa Azoty Zaklady Azotowe Pulawy (ZAP), Grupa Azoty Zaklady Chemiczne Police, Grupa Azoty Zaklady Azotowe Kedzierzyn (ZAK), Grupa Azoty Siarkopol and Grupa Azoty Zaklady Fosforowe Gdansk.
We remind, ORLEN Group's PGNiG Upstream Norway has bought interests in two fields on the Norwegian Continental Shelf, said the company. The deal is consistent with the Group's strategic goal of raising its own gas production volumes to improve Poland's energy independence and security. Under an agreement with Sval Energi AS, PGNiG Upstream Norway has purchased a 10% interest in licence PL211 CS, covering the Sabina and Adriana fields.