Current Report No. 53/2016
Belongs to:
- Reports
Date of preparation: 27 December 2016
Subject: Signing of coal supply contract with PGG to supply coal to Ostrołęka B
Legal basis: Article 17 Section 1 of the Market Abuse Regulation – confidential information
The Management Board of ENERGA SA (“Company”) reports that on 27 December 2016 the subsidiary Elektrownia Ostrołęka SA signed a Contract with Polska Grupa Górnicza Sp. z o.o. (“PGG”) to supply coal to Ostrołęka B (“Contract”).
The Contract was signed for a definite term from 1 January 2017 to 31 December 2030, with an option to extend its term upon agreement of the Parties. The signed Contract envisages the supply of no less than 350 thousand tons of coal annually by PGG to the Ostrołęka B power plant. For 2017, the Parties agreed on the supply of 450 thousand tons of coal.
The estimated value of the Contract throughout its term, including the price of coal and transport, is PLN 1.26 billion. According to the Contract, the price of steam coal will be negotiated by the Parties for each successive calendar year of the Contract’s term.