Orlen, Energa, PGNiG to build gas power station in eastern Poland

Rafał Guz/PAP

Polish fuel concern Orlen will partner energy company PGNiG in the construction of a gas and steam power plant in the north-eastern city of Ostroleka.

Energa, a power company, will also take a lead role in the project along with Orlen.

"Orlen Group has acquired a partner for the realisation of an investment in a gas-steam block in Ostroleka, which will be PGNiG," the company said in press release. "A trilateral contract has been signed guaranteeing PKN Orlen and Energa a leading position in the project, with a combined share package of 51 percent. PGNiG will take 49 percent of shares."

Orlen added that it had signed an anex to a 2016 contract with PGNiG which guarantees gas deliveries until the end of 2027 (with an option to extend till 2028) for all Orlen Group production facilities in Poland, including the Ostroleka plant.

A new company, according to Orlen, will be established for the construction of the Ostroleka plant. It will be created by June 30, 2021, after all conditions have been met, including permission from anti-trust bodies.

Pawel Majewski, PGNiG president, said using gas in the Ostroleka plant instead of coal will minimise the expulsion of harmful particles into the atmosphere and considerably reduce the level of greenhouse gas emissions.

In April, Orlen said it could engage in the Ostroleka power station project on condition that the technology was changed from coal to gas. A month later, Orlen declared a financial stake in the project and that it would take part on a partnership basis. Orlen and energy firms Energa and Enea later signed an agreement on the conditions for building a gas-powered block. On Tuesday, Enea announced it was withdrawing from the project.