Polish energy company ORLEN Group announced on Tuesday (14 November) that it has concluded long-term contracts for the supply of natural gas to multinational steel manufacturing company ArcelorMittal in Poland (ArcelorMittal Poland and ArcelorMittal Warszawa).
The contracts are to be implemented from 1 January 2024 to 31 December 2028. The estimated maximum volume of supplies during this period is estimated at around 26 terawatt-hours (TWh) of natural gas.
“ORLEN, as the largest supplier of natural gas in the country, is a proven business partner and offers its customers attractive terms of sale of the raw material. We perfectly understand the needs of the steel industry in times of high price volatility and the challenges related to the energy transformation. The agreements we have signed combine a guarantee of supply with the flexibility of commercial solutions, ensuring business benefits for each party,” said Daniel Obajtek, President of the Management Board of ORLEN.
According to the contracts, ArcelorMittal is set to purchase gas on market terms at prices linked to stock exchange indices. The estimated value of the contracts is approximately 4.64 billion zlotys (1.06 billion euros).
“Stability of supplies is a factor that has always been extremely important to us in this type of contracts and has recently become even more important. Flexibility is also important to us because the steel industry is a cyclical industry. We are pleased that the provisions of the contracts concluded with ORLEN meet these two needs,” said Sanjay Samaddar, President of the Management Board of ArcelorMittal Poland.
The ORLEN Group has been supplying natural gas to ArcelorMittal in Poland since 1 January 2017.