ORLEN Secures Long-Term Gas Sales Contract with Elektrocieplownia "Zielona Góra" SA

ORLEN, a prominent player in the energy sector, has recently solidified its partnership with Elektrocieplownia "Zielona Góra" SA, a crucial subsidiary of the PGE Capital Group, through a significant natural gas supply agreement. This landmark deal, valued at PLN 6.3 billion, underscores ORLEN's commitment to providing essential energy resources to support community infrastructure and national electricity demands.

The agreement, set to commence on July 2, 2024, and extend until December 31, 2036, with a possible early termination option by December 31, 2030, marks a pivotal extension of their existing collaboration. Over the course of 12.5 years, the contract aims to deliver up to 38 terawatt-hours (TWh) of natural gas, ensuring a stable and sustainable energy supply for Zielona Góra and contributing to the broader national power grid.

At the heart of this agreement is ORLEN's dedication to meeting Elektrocieplownia "Zielona Góra" SA's energy needs with both reliability and flexibility. The terms of the contract allow for pricing based on dynamic gas exchange quotations, with adjustments tied to the volume of gas supplied. This approach not only guarantees stable energy costs but also provides the flexibility necessary to adapt to market fluctuations and evolving operational demands.

Furthermore, the partnership empowers Elektrocieplownia "Zielona Góra" SA to shape its own strategy for managing gas prices, enhancing its ability to navigate the complexities of energy procurement effectively. This strategic autonomy ensures that the plant can optimize its operations and budgetary planning in alignment with its long-term sustainability goals.

The collaboration between ORLEN and Elektrocieplownia "Zielona Góra" SA is rooted in a history of mutual trust and shared objectives. Originating from their initial gas sales contract in 2001, followed by the commencement of fuel deliveries in 2004, this longstanding partnership has continuously evolved to meet the growing energy demands of Zielona Góra and the broader region.

In summary, ORLEN's commitment to sustainable energy solutions is exemplified by its ongoing support of Elektrocieplownia "Zielona Góra" SA. This new agreement not only ensures reliable energy supply for local residents but also contributes significantly to the national energy security agenda. As both companies move forward, they remain steadfast in their mission to drive sustainable growth and meet the evolving needs of their communities and stakeholders alike.

ORLEN Group's evolution is characterized by a shift towards renewable energy and advanced petrochemistry. ORLEN is enhancing its strategic pillars with a fresh approach to retail sales, aimed at efficiently catering to diverse customer needs. In response to long-term trends, the company is actively pursuing innovative solutions in new mobility, hydrogen energy, and recycling.