Record-high Natural Gas Sales from Poland (PGNiG) to Ukraine

- In just seventeen months - from August 2016 until December 2017- Polish Oil and Gas Company has delivered over 1 bcm of natural gas to the Ukrainian market. PGNiG's supplies of gas to Ukraine have doubled in 2017 reaching over 700 mcm a year. This confirms the Company's increasing role on the gas market of Central and Eastern Europe.        (Logo: http://mma.prnewswire.com/media/625669/PGNiG_Logo.jpg ) "These results are very satisfying. The sales of gas to the Ukrainian market is successful thanks to our proficientand flexible price policy," commented Maciej Woźniak, Vice-President of PGNiG."Our supplies are attractive, because they are not only competitive, but also reliable and secure which is of a great importance to Ukraine. Portfolio of gas in our offer is well diversified: it comes from our domestic production in Poland and from various import directions. In the first three quarters of 2017, 12 percent of our total import came via LNG terminal in Swinoujscie (South-West Baltic Sea coast) mainly from Qatar, Norway and the USA. We do not plan to import natural gas from Russia after 2022 -the expiration date of the current long term contract with Gazprom. For PGNiG energy security is a priority and itmeans diversified supplies of gas from different geographical directions at competitive prices, while supplies from Gazprom do not fulfill these conditions," Maciej Woźniakadded. PGNiG started delivering gas to Ukraine in August 2016 via a direct interconnector. Maciej Woźniak declared: "We are able to further strengthen our contribution to the Ukrainian diversification policy with increased gas exports. Unfortunately we have to wait for the expansion of the physical capacity of the Polish-Ukrainian interconnector. The existing cross-border capacity could be used for additional services like the virtual reverse flow, starting tomorrow. However, this option is being continuously blocked by Gazprom in the very same way it was blocked on the Ukrainian-Slovakian interconnector - through preventing access to respective shipper codes to Ukraine". In October 2017 the Company signed framework agreements with the Ukrainian gas system operator Ukrtransgaz for gas storage and transmission pipeline capacities in Ukraine. This has opened new trade opportunities for PGNiG. According to Argus data, in Q3 of 2017, PGNiG was the 9th biggest gas exporter to the Ukrainian market and the biggest Polish gas exporter to the neighboring country. The Company's strategy includes further development of commercial activity on the European markets. Polish Oil and Gas Company (PGNiG) is the leader of the Polish natural gas market. The company's core business includes exploration and production of natural gas and crude oil. Its subsidiaries import, store, sell and distribute gaseous fuels. They also generate and trade heat and electricity. PGNiG holds stake in 30 companies including entities that provide professional geophysical, drilling and maintenance services. PGNiG holds exploration and production licenses in Norway and in Pakistan. One of its subsidiaries PGNiG Supply & Trading GmbH with a seat in Munich deals with gas trading in Western Europe and established its London international LNG trading office.