Key investment projects and CAPEX
In 2016, PSG’s total CAPEX ran to PLN 1.1bn. The focus areas of CAPEX, which accounted for the largest share of the funds spent, were:
- projects to enhance gas fuel sales through network extension and construction of new connections (PLN 551m);
- projects to upgrade the gas network due to its technical condition, depreciation of network infrastructure and potential threat to the security of gas supply (PLN 305m);
- purchase of new measurement devices (gas meters) to be installed on the premises of new customers, or to replace existing meters after their certificates expire (PLN 108m).
Other initiatives included implementation of a new PSG organisational structure, optimisation of processes, developing a concept for a Management Information System as well as a number of IT projects and projects related to application of LNG technologies in gas fuel distribution (including a project to build a plant that would manufacture installations and equipment used in construction of LNG regasification stations). Furthermore, PSG has been engaged in a regulatory/cost benchmarking project pursued jointly with selected European distribution network operators, projects in the area of gas transport as well as infrastructure projects, aimed at implementing guidelines designed to improve the operational safety and quality of gas networks. PSG is strongly committed to connecting new customers and upgrading the gas network to ensure the security and reliability of gas supply, which in the future will translate into a sustainable revenue stream from gas distribution services.