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05.11.2014 PGNiG commences price negotiations with Gazprom

PGNiG SA has requested OAO Gazprom and OOO Gazprom Export to renegotiate the price of gas supplied by Gazprom under the Yamal Contract of September 25th 1996. The Management Board of PGNiG SA decided to call for price renegotiation in connection with material changes observed on the European energy market in the recent years.

PGNiG SA's request marks the beginning of the formal renegotiation procedure. Pursuant to the Yamal Contract, if the parties fail to reach an agreement concerning price renegotiation within six months, the Company will have the right to initiate arbitration proceedings. PGNiG will use its best efforts to reach a satisfactory agreement through bilateral talks.

The Yamal Contract provides for gas supplies until and including 2022, in an annual quantity of up to 10.2 bcm. Gazprom remains PGNiG SA's most important gas supplier, and PGNiG SA is among the largest buyers of gas supplied by Gazprom to the European Union.

Dorota Gajewska

PGNiG SA Press Officer

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