Under the contract, PGNiG will additionally supply gas to KGHM’s Mine Cooling Station located in Kwielice, Lower Silesia


PGNiG Customer service in Tomaszów Mazowiecki. (Credit: Warszawska róg Szerokiej w Tomaszowie Mazowieckim, w województwie łódzkim, PL, EU, CC0./Wikipedia.org)

Polish Oil and gas Company (PGNiG) will increase supplies of natural gas to KGHM Polska Miedź SA. Both companies have signed an additional individual contract under their existing framework agreement.

Under the contract, PGNiG will additionally supply gas to KGHM’s Mine Cooling Station located in Kwielice, Lower Silesia. The station will be placed in service in 2021. The project implemented by KGHM will include a system of pipelines and feeders designed, among other things, to recover heat that would support the company’s energy management needs. The value of the contract increasing the volumes of natural gas supplied by PGNiG to KGHM is estimated at PLN 190m.

‘We are proud to expand our relationship with KGHM, one of the world’s largest copper producers and our long-standing, strategic customer, which is constantly growing its business. In this way, we can together support the development of Poland’s economy,’ said Jerzy Kwieciński, President of the PGNiG Management Board. ‘Our ambition is to respond to the growing needs and expectations of our trade partners, as confirmed by the additional individual contract and several annexes to the existing agreement between PGNiG and KGHM. PGNiG’s customers are our top priority, and their trust is what we prize the most. We guarantee the key benefits sought by production companies, namely the attractive prices and security of gas supply,’ added Jerzy Kwieciński.

‘By securing gas supply to our Mine Cooling Station located near the GG-1 shaft, we will able to supply chilled water to mine workings located below 1,200 metres within the Głogów Głęboki Przemysłowy mining area. The optimised gas procurement process introduced into the contract has been a priority for KGHM, given the huge amounts of gas consumed in our production processes,’ said Marcin Chludziński, President of the Management Board of KGHM Polska Miedź SA. ‘What also deserves attention is the fact that the new contract and annexes were negotiated and drafted during the COVID-19 pandemic, perfectly demonstrating both KGHM’s and PGNiG’s preparedness for talks and negotiations in challenging business conditions,’ added Marcin Chludziński.

Both companies have also developed additional mechanisms to optimise the purchase and sale of gas, which were introduced as annexes to the existing agreement and individual contracts concluded between PGNiG and KGHM on July 27th 2017. The agreement and contracts signed on that date provide for supplies of natural gas from PGNiG to KGHM until 2033.

Source: Company Press Release