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Conclusion of agreements for building and service of power plant in Wloclawek

05-12-2012  

PKN ORLEN and a consortium of General Electric International Inc., acting through General Electric International S.A., the Polish branch, and SNC-LAVALIN POLSKA Sp. z o.o. signed a turn-key contract for a new CCGT unit in Włocławek. Concurrently, a comprehensive twelve-year maintenance contract for the key CCGT unit components was signed with General Electric International S.A., the Polish branch. The contracts total PLN 1.1bn VAT-exclusive and approximately PLN 200m, respectively. The overall project costs are estimated at just under PLN 1.4bn.
 
The new 463 MWe unit, Poland's most advanced power project of its type, will cogenerate electricity and heat for the Anwil Group, PKN ORLEN and other entities. It is expected that approximately half of its output will be sold on the market. The unit is scheduled to come on stream in December 2015.
 
The other of the two contracts signed today provides for the maintenance of the gas turbine, steam turbine and generator over a period of the twelve years following the unit start-up.
 
”Today's signing of the contracts gives a go-ahead to growth-oriented investment plans in the power segment, which are part of PKN ORLEN's new strategy for 2013–2017. It envisages an over fourfold increase in generation capacity in the next five years, which will be based on gas-fired technologies and electricity/heat cogeneration. Following implementation, the power projects will generate a sustainable income stream as soon as in 2017, ” said Jacek Krawiec, President of the PKN ORLEN Management Board.
 
The Włocławek-based project is PKN ORLEN's flagship endeavour in pursuit of the Company's strategy in the power segment. It will help the Company enter the power market, while providing secure, cost-effective electricity and heat supply to Anwil. For the purposes of a feasibility study covering the project, conservative sector assumptions were made as regards the increase in the prices of electricity and carbon allowances. The project accounts for the differences between the Polish market and more mature economies that follow from the make-up of Poland's energy mix and the expected future generation deficit on the power system.
 
Another advantage of the project's location is its close proximity to GAZ-SYSTEM's network and the Yamal pipeline (less than 2.5 kilometres), as well as its relative position on PSE OPERATOR's power grid. An advantageous location of the project, particularly its close proximity to Anwil's facilities, helped shift the power plant to high-efficiency cogeneration (ability to simultaneously generate electricity and useful heat) and optimise capital expenditure.
 
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PKN ORLEN

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