Agreement between GAZ-SYSTEM S.A. and PKN ORLEN S.A

Photo of the article GAZ-SYSTEM S.A. and PKN ORLEN S.A. have signed an agreement concerning the connection of the gas installations in the PKN ORLEN power station under construction in Włocławek to the national gas transmission network.
The agreement foresees the construction of a connection gas pipeline in the territory of the Lubań and Włocławek Communes and connecting the new section to the existing gas pipeline in the region of the town of Gąbin in the Mazovian Voivodship.  The scope of works will also include the modernisation of the Gustorzyn hub, which will enable bi-directional gas flow, as well as the construction of the gas station with a capacity of 80 tcm/h with the possibility of increasing it to 160 tcm/h. 
The forecast value of the investment will amount to over 22 mln PLN, and the term for completion is estimated to be 30 months. PKN ORLEN, as the end customer, pursuant to the Energy Law Act, will cover 25% of the outlays for this investment.
- PKN ORLEN is consequently fulfilling the strategy of transforming the Company into a multiutility concern. The construction of the modern gas power station in Włocławek is one of the key investments in fulfilling this strategy. We already have the majority of the required decisions and permits, and we are now facing selection of the general contractor. The agreement with GAZ-SYSTEM S.A. will ensure that the right conditions will be created  to enable the gas block to be started-up, which will take place in 2014," Jacek Krawiec, President of the Management Board of PKN ORLEN, commented.
"Creating the technical possibilities enabling the greater consumption of natural gas in Poland and development of the investment in the gas energy domain is one of the priorities of the business strategy of GAZ-SYSTEM S.A. The Company is fulfilling the investment plan involving the construction of over 1,000 km of new gas transmission pipelines in Poland, the construction of new cross-border connections and the LNG terminal in Świnoujście. The performance of these investments will enable the creation of the right conditions for the development of business ventures based on natural gas in Poland and access to the raw material at competitive prices on the European market," Jan Chadam, President of the Management Board of GAZ-SYSTEM S.A, explained.      
The construction of the new and modernisation of the existing transmission infrastructure is part of the fulfilment of the plans of PKN ORLEN that include the construction of the power block with a capacity of 450 MGW, powered by natural gas in Włocławek. The commencement of the investment is planned for next year and the block is set to be started-up in 2014. 
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PKN ORLEN is one of the largest corporations of the petroleum industry in Central and Eastern Europe, considered in the first ten in the world in the "Refining & Marketing" category according to the "Top 250 Global Energy Company" rankings.
The Concern is involved in converting petroleum oil into lead-free petrols, diesel oils and heating oils, aviation fuels, plastics and a wide range of petrochemical products. The company manages seven refineries in Poland, the Czech Republic and Lithuania. The integrated refinery and petrochemical complex in Płock is considered one of the most innovative and most efficient structures of this type in Europe. Our refineries convert in total over 30 mln tonnes of petroleum annually.
The Company has the largest in Central Europe petrol station network amounting to over 2,600 stations located in Poland, Germany, the Czech Republic and in Lithuania.  The base of the retail network of ORLEN is an effective logistic infrastructure comprising of ground and underground storeroom bases and a network of long-distance pipelines.
Thanks to the well devised and consistently implemented optimisation and investment actions, PKN ORLEN is successfully fulfilling its adopted development strategy. It includes, among others, the construction of new business segments and transforming the Company into an integrated fuel and energy concern possessing a diverse asset portfolio.
The Concern is fulfilling its prospecting and extraction projects through the ORLEN Upstream Company in the territory of the Republic of Poland (e.g. shale gas) as well as in the Latvian Baltic Sea economic zone.

The Gas Transmission Operator GAZ-SYSTEM S.A. is a strategic company for the Polish economy responsible for natural gas transmissions throughout Poland. The Company manages assets worth in excess of 5 bn PLN comprised mainly of elements of the transmission system, e.g. more than 9.7 thousand km of high pressure pipelines, 15 compressor stations, 56 hubs and 970 exit points. The Company employs over 2,000 people.
GAZ-SYSTEM S.A. will build over 1,000 km of new gas transmission pipelines by 2014.  The most important will be constructed in North Western and Central Poland (Szczecin-Lwówek, Świnoujście-Szczecin, Szczecin-Gdańsk, Włocławek-Gdynia, Rembelszczyzna-Gustorzyn, and Gustorzyn-Odolanów), as well as in Lower Silesia (Polkowice-Żary, and Jeleniów-Dziwiszów). The development of the gas pipeline network in Poland may constitute an important element of the North – South Gas Corridor joining the LNG terminal in Świnoujście with the planned Adria LNG terminal and with the Nabucco gas pipeline with the aid of the internal transmission infrastructure of Central European countries.
GAZ-SYSTEM S.A. is also developing gas pipelines in Lower Silesia, which will enable the off-take of greater volumes of gas from the western direction. Once the development of the system has been completed in 2011, it will be possible to transport up to 1.5 bcm of gas annually (current capacity amounts to 0.9 bcm of gas annually) via the Lasów point on the Polish - German border.
In 2011, GAZ-SYSTEM S.A. completed the construction of the Włocławek-Gdynia gas pipeline, the gas compressor station in Goleniów, and the gas compressor station in Jarosław. The Company has also started up the new Polish - Czech Interconnector, which will enable the transport of approx. 0.5 bcm of gas annually.
Contact:
PKN ORLEN SA
Press Centre
Tel (24) 256 92 92; (22) 77 80 109
GAZ-SYSTEM S.A.
Małgorzata Polkowska, Spokesperson
Tel. (22) 22-01-546, 691-911-217