03 December 2012 16:34 [Source: ICIS news]
LONDON (ICIS)--Zaklady Chemiczne Police (ZChP) is set to have the most diversified gas supplies among Poland's chemical companies following the signing of two contracts worth a combined zloty (Zl) 207.6m ($65.7m, €50.6m), the nitrogen phosphorus potassium (NPK) fertilizer and titanium dioxide producer said on Monday.
The contracts, a two-year agreement for German gas with E.ON Ruhrgas worth Zl 107.7m and a one-year deal with Poland's Egesa Energy Group valued at Zl 99.9m, will take effect in 2013 in line with the liberalisation of Poland's gas supply market, it added.
The deals follow an October deal signed with Poland's Handen, a subsidiary of Germany's VNG, for two years, worth Zl 125m.
By 2013, gas sourced from suppliers other than the dominant gas provider in Poland, PGNiG, should account for slightly more than one-third of the company's consumption, ZChP said.
“ZChP's diversification of gas sources is a positive development in terms of both gas security and costs,” said analyst Piotr Drozd at investment bank WOOD & Company.
“German hub prices are currently 8% below the Polish tariff levels, so, even assuming a 3.3% tariff cut from January 2013 in the Polish tariff, the discount should remain marginally supportive for ZChP,” he added.
Gas currently represented 17% of the ZChP's Cost of Goods Sold (COGS), according to WOOD & Company figures.
The controlling shareholder in ZChP is the state-controlled chemical group Zaklady Azoty Tarnow (ZAT).
($1 = €0.77, $1 = Zl 3.16, €1 = Zl 4.10)
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