PGE Group companies concluded agreement with PGNiG for gas supplies

The Management Board of PGE Polska Grupa Energetyczna S.A. (the "Company", “PGE”) discloses that on September 30, 2022, PGE’s subsidiaries - PGE Energia Ciepła S.A., PGE Toruń S.A., Zespół Elektrociepłowni Wrocławskich KOGENERACJA S.A. and PGE Gryfino 2050 Sp. z o.o. – concluded a framework agreement with Polskie Górnictwo Naftowe i Gazownictwo S.A. (“PGNiG”) for sale of gas fuel (the “Agreement”) along with individual contracts, regulating commercial terms of gas supplies.

The Agreement, together with individual contracts, standardise the so far diversified conditions of purchase of high-methane gas by PGE for all collection points. At the same time, supplies are guaranteed for the decarbonisation investments pursued by PGE, inter alia PGE Gryfino (construction of two CCGT units at Dolna Odra power plant) and New Czechnica CHP plant, including start-up period.

The framework agreement was concluded for an indefinite period, while the individual contracts secure supplies of gas for 10 generating units of PGE Group in period October 1, 2022 – December 31, 2025. The estimated value of gas fuel under the Agreement and the individual contracts amounts to approx. PLN 23 billion. The pricing formula applied for the individual contracts will be based on gas market price indices.