Polish Oil and Gas Company (PGNiG) has signed a long-term agreement to supply natural gas to steelmaker ArcelorMittal in Poland.
Under the PLN 1.4 billion (around $245 million) deal, which runs from January 1 2017 to January 1 2020 with an option for extension until January 1 2023, PGNiG is to supply up to 1.6 billion cubic meters of gas per year to ArcelorMittal.
The contract “grants ArcelorMittal flexible purchases of natural gas based on market conditions at prices related to power exchange indices” PGNiG said, adding it provides for “the possibility of additional gas supplies in the future.”
“PGNiG offers modern European-standard conditions for purchasing natural gas” commented Maciej Woźniak, vice-president of the PGNiG management board, responsible for trade. “We are glad that we will be able to sell gas to such a significant and demanding recipient from the industry sector which ArcelorMittal is” he said, adding that the company expects “further extension of our cooperation.”
“This contract provides us with competitive conditions for gas purchases for the next years” said Geert Verbeeck, CEO and deputy chairman of the board of directors, ArcelorMittal Poland.
He added this was part of expanding cooperation between the two companies.
