Axpo to sell natural gas to URSA Polska

Contract enables purchase of gas on flexible terms. Also supports third-party participation in group purchases of gas in European Union. Purchased gas will power URSA Polska plant in southern Poland, which produces thermal insulation materials to support energy efficiency.

Axpo Polska, a subsidiary of Switzerland’s Axpo Group, and URSA Polska, a leading producer and distributor of quality insulation materials for the construction industry, have signed a contract for the supply of natural gas, it was announced today. Gas purchased under the agreement will power URSA's production facility in Dąbrowa Górnicza, southern Poland. The contract provides a flexible purchasing structure indexed to natural gas market. Under the agreement, URSA Polska has the option to hedge volumes on the gas exchange. Unhedged consumption will be purchased on the day-ahead market.

The participation of third parties in group purchases of gas in the European Union is also provided under the flexible Polish contract. This new purchasing mechanism was introduced to the European market at the beginning of the year. It aims to counteract the dependence on natural gas supplies from Russia while also reducing and stabilising gas prices in EU markets. The European Commission has announced further tenders for later in the year.

Axpo Polska Head of Origination and Board Member Paweł Wierzbicki said: “Thanks to Axpo’s international presence, we’re able to offer customers solutions based on competitive terms for purchase of both electricity and gas. URSA Polska’s strong market knowledge and clearly defined requirements really facilitated the negotiation of this contract. As an experienced international company, they recognise the pressing need to work towards sustainability and independence from fossil fuels. We appreciate the opportunity to cooperate with such a partner.”

Axpo also works with URSA in the German market and, through Etex to which URSA belongs, in the UK as well. The contract signed in Poland further demonstrates Axpo's position as an international energy services provider.

Miroslaw Gawryluk, General Manager Poland, Nordic, Baltics at URSA said: “Axpo Polska presented a flexible solution tailored to our needs, ensuring we can effectively deliver our products to our customers. Pricing our gas on transparent market exchanges enhances our options and enables us to implement our procurement strategy. When selecting a partner, it was also important to us that they share our vision and commitment to invest in creating a low-carbon economy. We find common values, especially these related to sustainable development, in our cooperation with Axpo”.