The annex to the Framework Agreement, together with the new Individual Contracts, will secure, in the period from 2023 to 2027, at least 90% of the total gas demand of the Grupa Azoty Group companies. The new Individual Contracts have been concluded for a four-year period of deliveries, starting October 1st 2023, under the 3+1 formula. After three years of the contract term, the fourth year is optional and no contractual penalties will be charged for termination of the contract after three years provided that a termination notice is given by September 30th 2025.

The provisions of the Framework Agreement of April 13th 2016 between the Grupa Azoty Group companies and PGNiG, as amended by the annex, apply to deliveries made as of July 1st 2023. In line with the annexes to the Individual Contracts currently in force, the key commercial terms of gas deliveries by PKN Orlen in the period from July 1st 2023 to September 30th 2023 will be the same as those defined in the new Individual Contracts applicable from October 1st 2023.

“Stable gas supplies and the price of this commodity are key factors in the market success of Grupa Azoty, which significantly determine the competitiveness of production and the prices of our products, hence the importance of signing a new agreement with a proven trading partner such as PKN Orlen,” said Tomasz Hinc, President of the Grupa Azoty S.A. Management Board.

According to the annex to the framework agreement for the supply of gas fuel and the new bilateral Individual Contracts, PKN Orlen will be the key supplier of natural gas to six Grupa Azoty Group companies: Grupa Azoty SA of Tarnów, Grupa Azoty Zakłady Azotowe Puławy SA, Grupa Azoty Zakłady Chemiczne Police SA, Grupa Azoty Zakłady Azotowe Kędzierzyn SA, and Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki Siarkopol S.A., and Grupa Azoty Zakłady Fosforowe Gdańsk Sp. z o.o.

The terms of the Individual Contracts do not differ from standard terms used in contracts of this type.