On 27 October, the submission phase for binding offers filed by Participants registered in the GAZ-SYSTEM's Open Season FSRU 2 procedure was closed.

The overall objective of the binding FSRU 2 Open Season procedure was to confirm the interest of market participants in increasing the regasification capacity of the FSRU Terminal by submitted long-term orders for the FSRU regasification services which would justify the implementation of the said project by GAZ-SYSTEM.

The procedure did not result in GAZ-SYSTEM obtaining binding orders at a sufficient level to proceed with the implementation of the FSRU 2 project. Nevertheless, the interest in the regasification services declared by the Participants imply that discussions may be continued in the future.

Currently, the Company continues its efforts aimed at building the FSRU 1 Terminal in the Gdańsk area and designed to provide annual regasification capacity of up to 6.1 bcm of gaseous fuel. Following the Phase 2 of the Open Season Procedure completed in August, an Agreement covering 100% of the Regasification Services was signed and thus provided the business case for further development of the project.

The planned FSRU 2 project intended to provide additional annual regasification capacity of 4.5 bcm of gaseous fuel will be the subject of further analysis.

The hydroengineering infrastructure that will be built as part of the FSRU 1 Terminal project will also provide for the possibility of a second storage and regasification unit development if market demand for the FSRU 2 is confirmed in the future.

About GAZ-SYSTEM

GAZ-SYSTEM plays a strategic role in the Polish economy. The company is responsible for natural gas transmission, operates major gas pipelines in Poland and the Baltic Pipe undersea gas pipeline, and controls the President Lech Kaczyński LNG Terminal in Świnoujście.

As part of the 2015-2025 investment programme, GAZ-SYSTEM is developing over 2000 km of new gas pipelines in western, southern and eastern parts of Poland. Interconnections with Lithuania and Slovakia have been completed, as well as the design of onshore gas pipelines that will connect the planned FSRU floating terminal in the Gdansk Bay to the national transmission system. The LNG Terminal in Świnoujście is also being expanded, which will increase its regasification capacity by more than half.