Polskie Górnictwo Naftowe i Gazownictwo SA reports that natural gas supplies provided under the Yamal Contract at the interconnection points in Drozdovitse (Ukraine), Kondratki (Belarus) and Vysokoye (Belarus) remain inconsistent with the nominations made by the Company.

On September 10th 2014, the delivery shortfall was approximately 45%. Under the Yamal Contract, PGNiG may collect gas volumes which are equal to or lower than the maximum contracted daily volumes defined for the individual entry points through which gas is delivered. The volumes of gas ordered by PGNiG were lower than the maximum volumes, and therefore compliant with the provisions of the Contract, but nonetheless they have not been met by OOO Gazprom Eksport.

To cover the deficit of gas supply from the east, PGNiG has resolved to import additional gas through the interconnection points in Lasów (Germany) and Cieszyn (the Czech Republic). Also, on September 11th 2014 gas deliveries commenced through the Mallnow interconnection point (Germany).

The reasons behind the reduced gas deliveries are being investigated, in particular to determine whether they are of technical or commercial nature.

PGNiG has not yet received any information from Gazprom concerning the reasons behind reduced gas supplies to Poland. Deliveries to PGNiG SA's customers are continuing uninterrupted. At the moment, there is no need to withdraw gas from underground storage facilities, which have been filled to capacity before the winter season. The storage facilities now hold approximately 2.6bn cubic metres of gas.

About PGNIG

The PGNiG Group is the leader of the Polish natural gas market, as well as the only vertically integrated gas company in Poland. Its parent undertaking is Polskie Górnictwo Naftowe i Gazownictwo. Formation of the Group's enabled coordination of the upstream and downstream operations - from exploration and production to storage to trade and distribution of gaseous fuels. The roots of the companies forming PGNiG date back to 19th century - to the beginnings of Polish and world oil industry. The company has been operating under the name PGNiG since 1982. In 1996, the state-owned company PGNiG was transformed into a joint stock company.