PGNiG Terminates Agreement with Consortium for Gas Storage Facility Construction

Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) terminated its agreement with the consortium in charge of the construction works at the Wierzchowice Underground Gas Storage Facility in Poland, explaining the decision in light of ‘non-performance and defective performance of the agreement.’

‘The progress of work on expanding the Wierzchowice Underground Gas Storage Facility is 97%. PGNiG intends to complete it using PGNiG Group resources. The project is scheduled for completion by the end of 2014,’ reads a note released on Wednesday. 

According to the press release, the work on the project was delayed by 30 business days. 

“The original deadline was November 2011,” confirmed via email a PGNiG’s press office personnel. 

As a result of the termination, PGNiG called on the consortium to pay contractual penalties of PLN 133.4 million,