Warsaw, 20 April 2015 PRESS RELEASE GAZ-SYSTEM S.A. buys pipes to build strategic gas pipelines In April of the current year, Gas Transmission Operator GAZ-SYSTEM S.A. ended public procurement proceedings for delivery of pipes with diameters of 700 and 1000 mm to implement strategic gas transmission pipelines. Framework agreements with contractors will be binding for a period of four years from the date of their signature. Specific orders will be executed on the basis of separate partial agreements concluded each time, upon the acceptance of the best offer. In this way, supplies will be ensured of pipes for the purpose of construction of strategic gas pipelines carried out by the company. Total amount which GAZ-SYSTEM S.A. intends to allocate for the performance of those agreements will not exceed the net amount of approx. PLN 1.84 billion. In consequence of the completed procurement proceedings, a selection was made of 10 contractors. For pipes with the diameters of 700 and 1000 mm: 1) PANYU CHU KONG STEEL PIPE CO. LTD 2) Metinvest International S.A. 3) Consortium composed of: FERRUM S.A. (the Leader of the Consortium) and HW PIETRZAK HOLDING Sp. z o.o. (Member of the Consortium) 4) Noksel Celik Boru Sanayi A.S. 5) Consortium composed of: DEAWOO INTERNATIONAL CORPORATION (the Leader of the Consortium) and ERCIYAS CELIK BORU SAN A.S. (Member of the Consortium) 6) Consortium composed of: IZOSTAL S.A. (the Leader of the Consortium) and STALPROFIL Sp. z o.o. (Member of the Consortium) 7) PFF Polska Sp. z o.o. 8) BORUSAN MANNESMANN BORU SANAYI VE TICARET A.S. Contact person: Małgorzata Polkowska, Spokesperson Tel. 22 220 15 46, Mobile 691 911 217 e-mail: pr@gaz-system.pl For pipes with the diameter of 700 mm: 1) Consortium composed of: SteelTubes Sp. z o.o. (the Leader of the Consortium) and Mexstal Sp. z o.o. (Member of the Consortium) 2) Consortium composed of: UNISET Rury Stalowe (the Leader of the Consortium) and IMEXRUR S.A. (Member of the Consortium) In 2015-2023, GAZ-SYSTEM S.A. is planning to build a total of approximately 2000 km of new pipelines in Western, Southern and Eastern parts of Poland. Due to the enormous scope of investment work, the company decided to apply the optimum method of investment project implementation, consisting of purchase of materials for the construction of pipelines (pipes and reinforcements) directly from manufacturers. This method of project implementation provides for significant acceleration of the investment work and an improvement of costs efficiency. “Our new investment projects which have already been started in the majority of cases, consist of an extension of gas infrastructure in Western, Southern and Eastern Poland. We have assumed that by 2018, the most important investment tasks for the Polish transmission system will be implemented or prepared within the so-called North-South Corridor. That is why, the intention of the company is to manage the whole investment process in the best possible way and obtain additional benefits resulting from a large scale of purchases and, therefore, ensuring significant savings. Due to this reason, we have decided again to employ the well-tested method of investment implementation as part of the procedure of investor’s deliveries,” emphasized Sławomir Śliwiński, Member of the Management Board of GAZ-SYSTEM S.A. *** Gas Transmission Operator GAZ-SYSTEM S.A. is a company of strategic importance for the Polish economy, responsible for the transmission of natural gas and the management of the main transmission grid in Poland. Between 2009 and 2015, GAZ-SYSTEM SA implemented an investment plan covering the construction of more than 1,200 km of new gas transmission pipelines. The most significant projects of this kind were completed in north-west and central Poland. The expansion of the gas pipeline network is seen as a major step in the development of the North-South Gas Corridor integrating the natural gas markets in Central Europe. The projects closed by GAZ-SYSTEM SA and the virtual reverse flow services for the Yamal pipeline have led to a significant improvement of Poland’s energy security by enhancing the technical import capabilities from directions other than the east of up to 90% of performed imports (before 2011 it was 9%). Contact person: Małgorzata Polkowska, Spokesperson Tel. 22 220 15 46, Mobile 691 911 217 e-mail: pr@gaz-system.pl
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